Four sources familiar with the matter confirmed that China issued the first 2023 crude oil import quotas to China.
One source stated that the volume was approximately 20 million tonnes (146 million barrels). This is to encourage refiners and increase production.
China’s Ministry of Commerce didn’t immediately respond to a request for comment via fax.
Refinery economics will determine the demand for the quotas, according to a senior executive at one of the involved refiners.
“Refiners might still choose to use new quotas next years as margins aren’t that encouraging.” He said that the impact on crude oil markets might be minimal.
