• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 40 mins Real Death Toll In CCP Virus May Be 12X Official Toll
  • 2 mins TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 13 hours WE have a suicidal player in the energy industry
  • 3 hours The Most Annoying Person You Have Encountered During Lockdown
  • 4 hours Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 7 mins Which producers will shut in first?
  • 10 mins How to Create a Pandemic
  • 1 hour A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 18 hours Washington doctor removed from his post, over covid
  • 4 hours Death Match: Climate Change vs. Coronavirus
  • 17 hours KSA taking Missiles from ?
  • 17 hours Shale Legs
Alt Text

This Supermajor Is About To Slash Permian Oil Production

Chevron is slashing capital expenditures,…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

A Sign Of Slowing Demand? Chinese Refiners Reach Crude Import Quota

China’s independent refiners known as teapots have used up the amount of imported crude that the government allocated to them in January, which means imports are likely to slow down through June, Platts estimates. That’s the month when Beijing will hold a second round of quotas.

The January quotas had 45.64 million metric tons of imported crude distributed among the teapots, most of which has already been processed. This amount is close to that allocated to teapots for the whole of last year: 60 million tons. As a portion of total Chinese crude oil imports, the 2016 quota allocations were equal to 16 percent.

The reason for the premature emptying of the tanks was that the 2017 allocations were based on how much each independent refiner had imported in January-October 2016, so those whose imports were higher in the last two months of the year received a lower quota than they would have liked.

Still, the quota allocation itself is good news: in December, the teapots started worrying that the government might decide to forego the practice. The refiners expected to be asked to submit their applications for an import quota by mid-November, but by early December there was still no news from the National Development and Reform Commission.

At the time, sources from the refining industry said that Bejing may be seeking to clip teapots’ wings as their share in total oil product exports grew at the expense of state-owned giants. This share, however, was relatively small as of the end of 2016, at 2.4 percent. Related: Wall Street Bullish On Oil Prices Despite Saudi Warnings

Earlier this month, the teapots were faced with another problem: Beijing suspended fuel export quotas for the independent refiners at the end of 2016. Teapots got their first fuel export quotas last year, which led to improved crude oil demand in China, positively affecting international prices. However, after the ban, they were limited to the domestic market, which threatened to substantially cut their income as competition intensified.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News