China has increased the quota on crude oil imports for companies by 20 percent

China has responded to an increase in crude oil supplies to the world market by raising the quota for oil imports for non-state companies by 20 percent.

Oil traders ‘ concerns about the growing supply from Libya and the possible increase in production by OPEC countries and Russia were offset by news from China, which announced a 20 percent increase in the quota for the import of crude oil for private companies in 2021.

In absolute terms, this is more than 820,000 barrels per day. By comparison, Algeria’s daily supply is only slightly higher. Private oil refineries have been actively developing in recent years and are playing an increasing role in both the local and international markets. Moreover, unlike their American and European counterparts, Chinese refiners are actively growing.

So, in early November, a completely new plant with a capacity of 200,000 barrels per day was launched in China. Another private giant of similar capacity will be put into operation in the second half of next year. This creates additional demand for crude oil in the market and strengthens prices. According to the Chinese Ministry of Commerce, private companies will be able to import more than 240 million tons of oil next year. Another 202 million tons from the international market will be taken by state-owned companies.