China has released the first batch of crude oil import quotas for 2026 for its independent refiners, a move expected to support the world’s largest oil-importing nation and help alleviate a supply glut in the domestic market. The quota release, announced on 27 November 2025, is seen as a key step in facilitating oil shipments that can arrive by the end of the year, trade sources told Reuters.

Details of Quotas for Independent Refiners

Among the independent refiners, Hengli Petrochemical has received permission to import 2 million metric tons (equivalent to 40,000 barrels per day) of crude oil. Other allocations include:

• Rongsheng Petrochemical: 750,000 tons
• Shenghong Petrochemical: 120,000 tons
• Hongrun Petrochemical: 530,000 tons

So far, 21 independent refiners have received quotas totaling approximately 8 million tons, up from 6.04 million tons allocated in November 2024. One trade source indicated that other refiners could receive official notifications later on Thursday.

China’s Ministry of Commerce, which oversees crude oil import quotas, did not respond immediately to requests for comment.

2026 Crude Oil Import Quota Overview

Last month, China set the non-state crude import quota at 257 million tons for 2026, unchanged from 2025. The remaining quota for independent refiners is expected to be announced early next year. Analysts expect that the new allocations will support prompt cargoes from Iran, Venezuela, and Russia, helping reduce floating storage volumes and providing some upward support for crude prices in the region.

Xu Muyu, a senior analyst at Kpler, noted:

“The new issuances are expected to lift prices for prompt Iranian, Venezuelan, and Russian cargoes and help clear part of the floating storage. While the broader oil market may find support, persistent oversupply concerns and uncertainties over U.S. sanctions could keep pressure on Dubai crude prices.”

Market Context and Implications

China’s crude imports had been constrained in October 2025 due to quota shortages and tightening Western sanctions, resulting in deeper discounts for sanctioned oil and increased floating storage in Asian waters. The release of new quotas is anticipated to boost near-term crude shipments and stabilize market conditions.

In related developments, India’s Russian oil imports are projected to hit their lowest levels in at least three years by December, reflecting broader shifts in Asian crude trade flows.

The latest quota allocations highlight Beijing’s careful management of the domestic crude market while balancing supply from sanctioned and non-sanctioned sources. Market watchers expect these moves to influence both regional crude prices and trading patterns across the Middle East, Europe, and Asia.