China's refiners have halted fuel exports until further notice, according to sources, a move that could further tighten the global fuel market. PetroChina has canceled some gasoline and jet fuel cargoes scheduled for October shipment. This comes after restrictions were eased in July, leading to a recovery in exports in August.
A halt in Chinese fuel exports, particularly if it becomes a government policy to prioritize domestic supply amid low inventories and strengthening demand, could significantly impact global fuel markets by reducing overall supply.
China's refiners have suspended fuel exports until further notice, according to multiple sources briefed on the matter, a move that could further tighten the global fuel market. PetroChina, a state-owned major, has canceled some gasoline and jet fuel cargoes that were scheduled for October shipment.
This development follows a period where China had eased most fuel export restrictions in mid-July, leading to a recovery in overseas shipments. In August, Chinese fuel exports rose by 12.7% year-on-year to 6.01 million tons. Exports had soared between July and September.
However, new restrictions appear to be in place for October, with no fuel exports authorized beyond Hong Kong and Macau ahead of the week-long Golden Week public holiday. It remains unclear if any fuel exports will be permitted after the holiday concludes on October 7.
Analysts had previously indicated that China might reduce its fuel exports in October due to multi-year lows in domestic gasoline and diesel inventories. GL Consulting noted that with "domestic supply already relatively constrained and internal demand strengthening, refiners are likely to prioritise the domestic market."
Pick the topics you care about. Get only what matters, on your cadence.