China has set the quota for crude oil imports by private traders at 16.68 million metric tons next year, or 335,000 barrels per day.

The amount is slightly more than this year's but it's still low as the sector remains tightly controlled by four state-owned traders. This year, private firms are allowed to import an average of 291,000 barrels a day, or some 12 percent of the total quota.

PetroChina Co's Chinaoil, Sinopec Corp's Unipec, Sinochem Corp and Zhuhai Zhenrong Corp are the four state oil traders that dominate the sector.

Private companies which apply for quotas should meet certain requirements regarding capital and handling capability set by the government.

It is still a highly regulated business and for private traders, they still have to sell most of the crude to state companies because in China, independent firms are not allowed to build a large scale refining project.

Meanwhile, Paris-based International Energy Agency cut its forecast of China's oil demand in 2006.

The agency revised down China's whole-year oil demand to 7.04 million barrels a day from its August forecast of 7.05 million. For 2007, it was cut to 7.43 million barrels a day from 7.44 million.

Separately, the Shanghai Securities Journal reported that China has pumped 3 million barrels of crude oil into its strategic oil reserve in Zhenhai, near Shanghai.

Source:佚名