2024.09.23

China issues 9 million tons of new fuel export quotas for 2024

China has issued 9 million tons of new oil export quotas for the remainder of 2024, including 8 million tons of refined fuels and 1 million tons of marine fuel, bringing the total export allocation for the year to 54 million tons. This new batch, however, is smaller than the third batch in 2023, which was 15 million tons. The quotas, granted mainly to state-owned oil majors such as Sinopec, CNPC, and CNOOC, are expected to boost crude processing in the country. However, uncertainties remain due to fluctuating domestic demand and profitability. Export volumes for gasoline and diesel have decreased by 26% and 31% respectively, while jet fuel exports increased by 33% due to rising travel demand. The marine fuel quota fell short of market expectations, which could reduce domestic supply and increase reliance on imports from hubs like Singapore.

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[SLOW] https://slowspace.io/ Trade Flow Malaysia crude exports by destination countries

Malaysia overtakes Saudi Arabia as China’s second-largest oil supplier

In August, China’s crude oil imports from Malaysia surged by 31% compared to the previous year, making Malaysia the country’s second-largest oil supplier after Russia, according to Chinese customs data. This increase occurred despite a general decline in Chinese oil imports. Malaysian imports, which include sanctioned oil from Iran and Venezuela, reached 7.5 million metric tons (1.77 million barrels per day). Imports from Russia, the top supplier, fell by 11% from last year but still amounted to 9.37 million metric tons (2.21 million bpd). Meanwhile, imports from Saudi Arabia, previously the second-largest supplier, dropped by over a third to 5.3 million tons (1.25 million bpd) due to higher prices. Year-to-date, imports from Malaysia have risen by 22%, trailing Saudi Arabia in the third position, with no direct shipments from Iran or Venezuela recorded.

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Chinese court declares third Sinochem refinery bankrupt

A Chinese court has declared a third Sinochem-owned refinery, Shandong Changyi Petrochemical, bankrupt, following earlier rulings this week against two other Sinochem refineries: Shandong Huaxing Petrochemical Group and Zhenghe Group Co Ltd. The court concluded reorganization procedures for the refinery but did not provide details on the asset disposition. Sinochem has not commented on the situation. These refineries, located in Shandong province, have a combined crude oil processing capacity of 380,000 barrels per day, roughly 3% of China's national output. Sinochem had shut down two of its refineries, Zhenghe and Changyi, earlier this year due to high crude prices and a weak refined fuel market. The region's independent refineries have also been operating at reduced capacity due to sluggish demand.

[SLOW] https://slowspace.io/

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India considers boosting oil imports from Brazil in talks with Petrobras

India is exploring the possibility of increasing oil imports from Brazil, according to a statement from Indian Oil Minister Hardeep Singh Puri. In a recent meeting with the head of Brazil's state-run oil company, Petrobras, they discussed enhancing crude oil purchases and potential collaboration in offshore exploration and production projects in both countries.

[SLOW] EIA - Crude Oil Outlook _ Brazil oil production

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[SLOW] https://slowspace.io/ Dung Quat Refinery cargo flow

Vietnam's Dung Quat refinery buys UAE murban crude for the first time

Vietnam’s Binh Son Refining and Petrochemical (BSR) has purchased its first cargo of Murban crude oil from the United Arab Emirates for its Dung Quat refinery, marking a shift to diversify import sources. The 300,000-barrel cargo is scheduled for delivery in December and will be the refinery’s first trial of a high-sulfur grade crude, as the plant traditionally processes low-sulfur crude. The seller and price details were not disclosed, and BSR declined to comment. Dung Quat refinery processes 32 types of crude, with a mix of domestic and imported sources. BSR has processed 100 million metric tons of crude oil since starting operations in 2009.

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Libya’s oil exports rebound despite ongoing ban by eastern authorities

Libya’s oil exports have rebounded in the past week, averaging 719,000 barrels per day between September 13 and 19, despite ongoing restrictions imposed by authorities in the east of the country. This marks a significant increase from the 314,000 barrels per day recorded the previous week. The export slump began in late August when eastern authorities ordered five key ports to halt operations due to a political stalemate over control of the central bank. Although the ban remains in place, oil shipments from all five ports have resumed, though volumes are still below the pre-dispute level of 1 million barrels per day. Libya remains divided between eastern and western governments, a power struggle that has persisted for a decade.

[SLOW] https://slowspace.io/ _ Libyan port, terminal and oil pipeline

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[SLOW] https://slowspace.io/ Satellite MT ALMA

Russian oil transfers continue off Greece despite ongoing navy drills

Despite ongoing Greek military drills intended to deter risky ship-to-ship transfers, tankers carrying Russian oil are still conducting cargo switches off Greece’s southern coast. The supertanker Alma is currently receiving crude from the smaller tanker Sagar Violet, which is carrying about 730,000 barrels of Russia’s Urals crude. The Laconian Gulf, a hotspot for these transfers, remains active despite the military exercises aimed at preventing such activities. These transfers help Russia move oil amid Western sanctions following its invasion of Ukraine. While the drills have reduced the frequency of such transfers, they have not fully stopped them, with occasional switches of Russian oil still occurring outside military zones.

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[SLOW] https://slowspace.io/ _ Port Agioi Theodoroi

Greek refinery fire disrupts crude shipments, forces Aframax to divert while VLCC docks

A fire at the Motor Oil (Hellas) Corinth refinery in Greece has caused disruptions in crude oil shipments. The fire damaged a distillation unit, which is now offline, leading to the diversion of an aframax tanker, Calypso, carrying Kazakhstani crude. The vessel departed for Castellon, Spain after waiting at anchor for less than 12 hours. Meanwhile, another VLCC, Ioanna, managed to dock at the refinery after partially discharging its cargo in Egypt. Despite the fire, the refinery continues to operate at reduced capacity and has recently diversified its crude imports, including its first shipment of Guyanese crude, following an attack on a Basrah Heavy cargo in the Red Sea. Over 30 tankers call at the Agioi Theodoroi complex each month.