China anticipates a continued tight supply of low sulfur fuel oil (LSFO) into December as domestic refineries reduce production volumes. The doubling of green corridor initiatives and increased stakeholder involvement may prompt market players to source more LSFO imports to replenish bunker market stockpiles. Chinese oil companies seek to compensate for reduced domestic supplies and meet term contract obligations, but stronger cargo premiums have capped inflows. The report emphasizes that 2024 will be pivotal for green corridors, which are essential for zero-emission shipping feasibility. Challenges include fuel decisions, commercial arrangements, and governmental support. Despite a decline in fuel oil bonded export quotas, China aims to grow Zhoushan port as Asia's bunker hub. Fuel oil imports in October rose to a four-month high, exceeding exports for the first time since June. Sinopec's LSFO export quota is expected to decrease, impacting China's total LSFO export quota for 2023.

SOURCE:GOOGLE