FIS: Fuel Oil Daily Morning Report 29 Sep 2023

Gasoil cracks received a boost yesterday, with the November ICE Gasoil crack rallying from around US$30/bbl to close at US$34/bbl.

This is after reports that the Chinese government told state refiners that it is unlikely that they will receive any further refined product export quotas this year. The government has issued three batches of export quotas so far this year, totalling 39.99 million mt, up from the 37.25 million mt issued over the whole of 2022.

There had been some hope that China will release further export quotas, which could help ease the tightness in middle distillate markets.