China has given a potential boost to its crude oil imports by issuing a second batch of import quotas for 2025 to its independent refiners, known as “teapots,” according to trade sources speaking to Reuters on Monday.
Unlike state-owned refineries, private refiners in China must be granted specific quotas to import crude oil for processing at their plants.
This new batch includes at least 152.49 million metric tons of crude oil quotas for the independent refiners. These quotas are in addition to the 5.84 million metric tons of crude oil allocated earlier in November, which is expected to be used by the end of 2024 or early next year.
With the new round of 152.49 million tons, the total crude import quotas for independent refiners in 2025 now stand at 158.33 million tons, equivalent to about 3.17 million barrels per day (bpd), according to Reuters’ estimates. This is a significant increase compared to the total import quota of 179.01 million tons for 2024.
China has also raised the provisional cap on the total crude import quotas for private refiners in 2025 to 257 million tons, up from the 243 million tons cap in 2024.
As the world’s largest crude oil importer, China has faced sluggish oil demand and weaker-than-expected crude imports in 2024, partly due to a slowing economy and reduced demand for road transport fuels. However, the new import quotas could stimulate increased purchases in 2025, particularly if oil prices remain low, around $70 per barrel.
After several months of weak imports, China’s crude oil imports saw a rebound in November, marking the first rise in seven months, driven by lower prices. The average daily import rate in November reached 11.81 million barrels, according to Chinese customs data, a 14.3% increase compared to the same month last year.
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