China Dumps Fuel Exports Amid Global Diesel Crisis
China has halted most of its refined fuel exports for October as Beijing prioritizes domestic supply security. Major refiners PetroChina and Zhejiang Petrochemical have suspended their shipments, with PetroChina canceling several gasoline and jet fuel cargoes. This move comes after a sharp deterioration in China's own fuel-stock position, with commercial diesel and gasoil inventories estimated to be around 20 million barrels below pre-war levels.
The decision follows a significant increase in Chinese exports during the summer, with official customs data showing total oil-product exports reached 6.01 million tonnes in August, up 12.7% year-on-year. However, Beijing has now restricted clean-product exports despite tightening domestic supply. The reversal comes as global diesel supplies are already being squeezed by Middle Eastern disruptions and Ukrainian attacks on Russian refineries.
China's government has intervened to limit the domestic impact of high international oil prices, partially suppressing scheduled gasoline and diesel price increases in September while instructing refiners to ensure stable supplies. This move is likely to increase competition for Asian and Middle Eastern barrels, which could exacerbate the global diesel crunch.