China raises quotas for refined oil products significantly compared to the start of 2022, following slow domestic demand, consultancies state to Reuters. That is all good news for tanker carriers.
Exports of oil products out of China are bumped up a notch at the start of 2023.
The government releases 18,99 million tonnes of export quotas, up 46 percent versus a year ago, consultancies JLC and Longzhong tell Reuters.
The quotas are primarily issued on account of lower domestic demand than expected resulting in an overhang of oil product inventories due to widespread restrictions having laid a damper on productivity.
According to the agencies, quotas are to encourage refiners to ramp up production and profit off of current attractive margins on oil exports.
Increased volumes bode well for tankers in Chinese and Asian waters, Fearnley, among others, estimates.
The quota permits were granted to four state-run companies Sinopec, China National Petroleum Corp, China National Offshore Oil Company and Sinochem Group along with privately-controlled Zhejiang Petrochemical Corp allowing them to cover mostly gasoline, diesel and jet fuel exports.
