It was unclear exactly how much volume China was ready to supply to Japan for February, but some traders said the total allocation was believed to be around 100,000 tonnes.

Term buyers nominated a total of 339,000 tonnes of Daqing crude following a surprise notice from China last Friday it could export the low sulphur crude for February loading, overriding an earlier statement it had no export availability for the month.

Traders said Japanese buyers were still negotiating with China National United Oil Corp (ChinaOil) for a larger allocation.

"The allocation is not final. We are still talking with the Chinese side for bigger volume," a crude trader said. ChinaOil is the sole trade representative for Daqing crude sales to Japan.

Traders also said term buyers in Japan had nominated 500,000to 600,000 tonnes for Marchlifting.

However, ChinaOil was currently willing to negotiate only February allocation, and had declined to comment on supply availability for March onward, sources close to the negotiations said. Traders earlier this week said China was unlikely to fully comply with the latest February nomination of 339,000 tonnes given time and logistical constraints.

Although ChinaOil officials were working through the Chinese New Year to handle the situation, export-related facilities were expected to remain closed until early next week, leaving a limited window for shipping and loading arrangements.