2020 3rd Batch Non-State Crude Import Quota to be Issued in June

SCI99

2020-05-27

2020 3rd Batch Non-State Crude Import Quota to be Issued in June

SCI learns that China will issue the 3rd batch of non-state trade crude oil import quotas in June, and the total quotas will be around 27 million tons. The first two batch of quotas in 2020 were 103.83 million tons and 53.88 million tons respectively.

Recently, China’s economic development revived rapidly after the public health issue. Considering that the international crude oil prices were under $40/bbl, which was the price floor set by China’s NDRC, the oil refining profits at Shandong independent refineries stayed at high levels. Moreover, the future trend of international crude oil prices is full of uncertainties. Therefore, independent refineries are now active in crude oil procurement since the current crude oil prices are at low levels.

Accordingly, the crude oil import demand from independent refineries is high, and China decides to issue the 3rd batch of non-state trade crude oil import quotas in advance.