• 6 minutes Will the trade war hurt US project builds? Not if the US does it right.
  • 12 minutes OIl Targets from Experts to $300, vs. imho $52
  • 19 minutes Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 7 hours Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 2 days Apple's $300 fund in China
  • 6 mins Trade War of 1930s, Extended the Great Depression
  • 2 days Ireland Exits Fossil Fuels
  • 6 hours Oil prices going down
  • 21 hours Britain should bet more on renewables and less on nuclear
  • 3 days Top Adviser to Khamenei: Iran Will Leave Syria, Iraq Only if Baghdad, Damascus Want It
  • 3 days Michiganders, Rejoice: Musk Will Fix Flint
  • 2 days Russia & China bypassing Oil Sanctions to North Korea, U.S. Peeved
  • 11 hours Tesla Shareholders Finally Fed Up? Could it be true?
  • 3 days Trump Threatens Sanctions against Shell, Uniper
  • 3 days Consumer prices on rise
  • 2 days What can bring oil prices down?
The Downside Risk For Oil

The Downside Risk For Oil

Oil market sentiment is as…

More Western Energy Companies Leave Iran

More Western Energy Companies Leave Iran

Though Iran is still seeking…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

China Issues Second Batch Of Crude Oil Import Quotas For 2018

China oil

China has issued its second batch of crude oil import quotas to independent refiners and trading companies for 2018—a much smaller batch, but the low volumes were expected because the first batch was a large one and estimated to cover nearly a year’s worth of small refiners’ imports.

China’s second batch of import quotas has a total volume of 11.91 million tons, Reuters reported on Friday, citing three trade sources who had seen the official documents.

As many as 26 companies were allowed to import crude oil in the second batch, including 21 independent refiners, the so-called teapots, who were first allowed to start importing government-approved quotas of crude oil in 2015.

The first batch of the 2018 import quotas was issued in December last year, when China approved crude oil import quotas for a total of 121.32 million tons for 44 companies. This total volume in the first batch was equal to 2.43 million bpd. Although state-held ChemChina received the single largest quota, several independent refiners saw their import quotas upped in the first batch compared to the allowances for 2017.

Commenting on the second batch of quotas, Sengyick Tee, a Beijing-based consultant at SIA Energy, told Reuters today:

“A much smaller batch of quota was expected as many independent [refiners] already got quota that’s equivalent to 11 months of use in the first batch.”

Related: The New Oil Cartel Threatening OPEC

Those crude import quotas do not include and do not apply to the major state-owned companies such as Sinopec or PetroChina that don’t have restrictions on importing crude oil.

Although most of the Chinese crude oil imports indeed go to the state-held majors, the rise of the independent refiners after they were allowed to import crude oil in 2015 has been a key driver of the oil demand growth in the world’s top oil importing country. The purchases by independent refiners have grown to account for around a fifth of China’s total crude imports.

But recently, concerns have started to emerge that new tax rules—aimed at clamping down tax evasion at teapots—have started to stifle the independent refiners’ profit margins and could limit their purchases of crude, potentially affecting demand growth in the world’s largest crude oil importer.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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