China allocates 2nd batch of 2019 oil product export quotas, raises year-to-date total 5%

China’s Ministry of Commerce has allocated the long-awaited second batch of oil product export quotas under the general trade route for 2019, totaling 23.79 million mt, to five state-owned oil companies, according to documents seen by S&P Global Platts late Thursday.

The new quotas have brought the total oil product export quotas allocated under both the processing and general trade routes to 45.29 million mt so far this year, up 5.3% from 43 million mt in the same period last year.

Meanwhile, the year-to-date quota volume for 2019 accounts for 98.3% of the total actual exports of gasoline, gasoil and jet fuel of 46.08 million mt in 2018.

In the second round, Beijing has allocated export quotas for 9.09 million mt of gasoline, 9.175 million mt of gasoil and 5.525 million mt of jet fuel under the general trade route to the country’s five state-owned oil companies — CNPC, Sinopec, CNOOC, Sinochem and China National Aviation Fuel.

The total quota volume in the second batch of 23.79 million mt, was slightly lower than the 28.39 million mt expected by industry sources since early May.

The second batch of export quotas under the processing trade route is likely to be issued soon.

Beijing controls exports by oil companies via quotas. It was not immediately clear when the government will release the third round of export quotas under the general trade route. In 2018, the third round was allocated on October 26.

In Q1 2019, the country exported 13.98 million mt of the three key oil products, up 21% year on year.

On a year-to-date basis, the gasoline quota adds up to 13.525 million mt, up 11.5% on the year, while gasoil is up 8.2% at 18.584 million mt. The jet fuel quota is down 3.8% on the year at 13.175 million mt.

Source: Platts