Beijing issued additional oil product export quotas of 4.5 million mt to four state-owned oil giants to ease the inventory pressure amid relatively slow recovery in domestic demand, sources with knowledge of the matter told S&P Global Commodity Insights on June 7.
With the new allocation, China will increase its gasoline, gasoil and jet fuel export volume to help ease tight global supplies.
Sinopec receives 2.4 million mt of the quotas, CNPC gets 1.53 million mt and the rest 420,000 mt and 150,000 mt go to CNOOC and Sinochem, respectively, the sources said.
With the release, the total allocation for 2022 stands at 17.5 million mt as of June 7, staying 40.7% lower than the 29.5 million mt volume a year ago.
China's exports of the three products dropped 51.7% on the year to 8.59 million mt in the first four months, according to the official data, leaving 7.91 million mt for May onward until the next round of quota allocation.
Among the allocations, 3.5 million mt is issued under the general trade route while the rest is under processing trade route.
Under the general trade route, all the exported barrels must be shipped by ships and sold overseas. The exported barrels under the processing trade route are mainly for jet fuel used to refuel flights plying international routes at China's airports.
Source: Platts
Under the general trade route, all the exported barrels must be shipped by ships and sold overseas. The exported barrels under the processing trade route are mainly for jet fuel used to refuel flights plying international routes at China's airports.
Source: Platts
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