China's July key oil product exports seen at 6-year-low amid tight quota – Platts

Quantum Commodity Intelligence - Chinese oil companies are likely to slash July exports of gasoline and middle distillates to a six-year low of 1.15 million metric tonnes amid tight export quota availability and better domestic margins, according to a report published by S&P Global Platts Tuesday.

Citing industry sources, the report added that outflows of gasoline, gasoil and jet fuel from China are likely to remain at low levels in the rest of the year, contrasting with a monthly average of 4.31 million mt in the first five months.

The previous monthly low was 899,000 mt in February 2015, export data from General Administration of Customs showed.

According to the report, refiners with quotas plan to export 30,000 mt gasoline, 490,000 mt gasoil and 630,000 mt jet fuel in July, representing 98%, 68% and 29% month-on-month reduction, respectively.

China's largest exporter, PetroChina, is expected to skip exports altogether in July, according to the sources.

Total key product exports in January-May stood at 21.57 million mt, leaving only 7.93 million mt of quota available for outflows for the rest of the year until the new quotas are allocated.

Moreover, Beijing is likely to limit the new quota allocation for rest of the year to below 10 million mt, Platts reported.

This set China's export quota for 2021 to be capped at 40 million mt, comparing to 59.03 million mt of total allocation for 2020 with 45.74 million mt of actual exports in the year.