China releases extra LSFO and refined fuel quotas

Oil

China’s Ministry of Commerce has issued an additional 1MT of low-sulphur fuel oil (LSFO) and 1.579MT of refined product export quotas to be used across the rest of 2021, according to Reuters. The refined fuel quotas have been allocated to state-run China National Petroleum Corporation (CNPC), Sinopec, and private refiner Zhejiang Petrochemical Corp, while the LSFO quotas were provided to CNPC, Sinopec and China National Offshore Oil Corporation (CNOOC). This new allocation takes China’s total refined fuel export permits for 2021 to around 38.6 MT, down by roughly a third from 2020 levels, whereas LSFO quotas have now risen to 12MT for the year, up from 10MT in 2020.