China's independent or “teapot” refiners were the main drivers of a spike in crude oil imports which averaged 8.22 million bpd in October for a total of 40.8 million metric tonnes (mt), with teapots accounting for 9.61 million mt. The uptick comes ahead of the expiration of import quotas, although Beijing has confirmed it will increase these by 42% for non-state refiners in 2019 to accommodate additional refinery capacity. Nevertheless, the ongoing trade war with the US has prompted China's importers to find alternative supplies, including Western Canadian Select, which is currently significantly cheaper than West Texas Intermediate.
China's independent or “teapot” refiners were the main drivers of a spike in crude oil imports which averaged 9.61 million bpd in October for a total of 40.8 million metric tonnes (mt), with teapots accounting for 8.22 million mt. The uptick comes ahead of the expiration of import quotas, although Beijing has confirmed it will increase these by 42% for non-state refiners in 2019 to accommodate additional refinery capacity. Nevertheless, the ongoing trade war with the US has prompted China's importers to find alternative supplies, including Western Canadian Select, which is currently significantly cheaper than West Texas Intermediate.