A total of 39 companies, led by two large private refiners -Zhejiang Petrochemical Co (ZPC) and Hengli Petrochemical - will receive the new quotas. ZPC and Hengli will each receive 3 million tonnes.
Brent crude futures were down 86 cents, or 1.2%, at $72.22 a barrel.
The bullish trend in oil remains intact, thanks to optimism surrounding the demand outlook. The dollar may well be strengthening but the fundamental picture for oil hasn't changed.
The U.S. Department of Agriculture reported export sales of U.S. wheat in the week ended June 10 at 287,100 tonnes, in line with trade expectations for 200,000 to 500,000 tonnes.