China Reimposes Fuel Export Restrictions Amid Global Supply Concerns
China has reinstated its fuel export restrictions, sparking concerns about global supplies. The move comes as China struggles to maintain its own crude oil and refined product inventories.
The country's largest refiner, Sinopec, announced it would curb oil prices starting in October in response to the National Development and Reform Commission's instructions.
China is the world's largest importer of oil, and officials are wary of importing more crude oil while prices are high. Chinese exports of refined products fell to about 300,000 barrels a day from April to June before recovering in July and nearly doubling in Australia.
However, with Iran under an American naval embargo, China's inventories are being tested. Tom Reed, a specialist at Argus, predicted a reduction in imports from the forecasted 750,000 barrels to 480,000 without a change in policy, potentially falling to 300,000 barrels per day in November.