China exported a total 29.09 million mt of gasoline, gasoil and jet fuel in January-July, leaving just 7.54 million mt of export quota available for the rest of the year and implying that monthly outflows from China will have to be slashed by about two-thirds over August-December compared with levels recorded so far this year, says an article published in Platts.
Oil exports arouse and gasoline drops
Data released by the General Administration of Customs on Aug. 18 showed that, despite a significant fall in July, China’s key oil products exports rose marginally by 0.3% year on year in the first seven months.
Gasoline exports dropped 49% month on month to a 14-month low of 740,000 mt in July, which was also the first time they have fallen below the 1 million mt mark in 14 months, according to GAC data. Similarly, gasoil exports in July slumped 41.2% from June, to a 10-month low of 1.39 million mt. The month-on-month decline in jet fuel exports was the lightest among the products but still hefty at 27.5%, with 660,000 mt heading overseas during July.
These July export volumes left just 40,000 mt of quota available by the end of the month. Following an additional allocation of 7.5 million mt early in August, availability for the rest of the year was raised to 7.54 million mt, but this will still require a significantly lower rate of exports to year-end unless there is a further quota allocation.
PetroChina lifts August exports
With the new batch, PetroChina has been able to lift its exports slightly from minimal levels in June and July, according to a source with PetroChina Guangxi. PetroChina was the first quota holder to use up its first batch of quotas in China.
Dalian Wepec exports
PetroChina’s Dalian Wepec has lifted its jet fuel, gasoil and gasoline exports 186,000 mt in August from the original plan of just 40,000 mt of jet fuel.
PetroChina’s Guangxi Petrochemical in southern China has resumed exports and is sending about 100,000 mt of jet fuel to overseas in August.
“The quota is not enough, we have to make good use of it,” said the source with PetroChina Guangxi.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!