SINGAPORE: Asia's cash discount for 500ppm gasoil widened 27 percent to 38 cents a barrel on Wednesday, the steepest discount in about two weeks as the pressure of high supply in the next months weighed.
China exported 1.47 million tonnes of diesel in November, up 8.5 percent from October and 8.3 percent below the record high monthly level in September.
The focus was still on Beijing not granting independent refiners, typically known as teapots, export quotas in 2017.
But additional refining capacities next year were set to counter any possible cuts from teapots.
According to a daily note from BMI Research, Beijing had given a combined fuel export quota of about 1.5 million tonnes this year to 11 teapots.
That amount is equivalent to about 2.5 to 3 percent of the total Chinese refined fuels exports, the note added.
New and expanded refineries from China to India on the other hand will add a net 450,000 barrels per day (bpd) of crude processing capacity in 2017, the highest since 2014, energy consultancy Wood Mackenzie said.
The increase amounts to about an additional 1.5 percent of refining capacity on top of Asia's total installed capacity of nearly 29 million bpd, Thomson Reuters Eikon data shows.
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