China cuts quotas for crude oil imports in first round of allowances for 2019
- They total 89.84 million tonnes, down from 121.32 million tonnes a year ago – a move that may signal slowing demand growth in the first half
China issued its first batch of crude oil import quotas for 2019 on Wednesday at a lower volume than for the same batch a year ago, though expectations are for the volumes to climb later this year.
The Ministry of Commerce granted quotas totalling 89.84 million tonnes to 58 companies in its first allowances for 2019, according to four sources with direct knowledge of the matter and documents reviewed by Reuters on Wednesday.
This is down from the 121.32 million tonnes issued in the first batch of allowances for 2018, although the sources said Beijing may increase the overall volume for 2019 in a second batch of quotas later this year.
It comes as Beijing seeks to end a bruising trade war with Washington and reduce the risk of a sharper economic slowdown in 2019.
The trade frictions are already disrupting global supply chains, fuelling concerns of a bigger blow next year to world trade, investment and financial markets.
Official data released this week showed China’s factory activity contracted in December for the first time in over two years, signalling a continued loss of momentum in the Chinese economy.