SINGAPORE/NEW DELHI: China is likely this month to export the highest volume of diesel, aviation fuel and gasoline since June 2021 at more than 4 million tonnes, after Beijing’s surprise release of a big batch of quotas, analysts and trading sources said.
These exports, led by China’s state oil giants, could help ease a tight global gasoil market - where inventories ahead of the northern hemisphere winter are at multi-year lows - and add to already rising gasoline stockpiles.
China in late September issued a fifth batch of quotas, the biggest this year in a policy shift aimed at lifting sagging exports. The move brought the total export allocation for diesel, jet fuel and gasoline so far in 2022 to 37.25 million tonnes, on par with 2021.
The October exports will be boosted by higher jet fuel and diesel shipments as these reap the highest profits for refiners, estimates from Wood Mackenzie, Refinitiv and JLC showed.
The research and data consultancies pegged diesel exports this month at between 1.2 million and 1.55 million tonnes.
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