China to resume October fuel exports after a brief halt, four trade sources say
- China has approved October exports of the three fuels at around 3.7 million metric tons combined
SINGAPORE: China is set to resume October refined fuel exports after a brief halt during its Golden Week holiday, a move that will help ease tight global diesel, gasolineand jet fuel markets, four traders familiar with the matter said on Friday.
China has approved October exports of the three fuels at around 3.7 million metric tons combined, according to two other industry participants.
Chinese refiners were expected to export slightly more than 4 million tons of gasoline, diesel and jet fuel in September, Reuters reported early last month.
The world’s biggest oil importer began curbing fuel exports in March to safeguard domestic fuel supplies as the US-Israeli war on Iran disrupted crude oil flows and refinery production, but relaxed controls between July and September.
China’s National Development and Reform Commission and the Ministry of Commerce did not immediately respond to requests for comment.
While Beijing typically regulates fuel exports through a quota system, it has recently tightened oversight by vetting shipments on a month-by-month basis.
Chinese refiners suspend October fuel exports
However, China started its week-long National Day holiday on October 1 without giving major refiners in the world’s largest refining hub a green light to export fuel products to regions other than Hong Kong and Macau in October, Reuters reported last week.
Because the Middle East war and the Ukraine-Russia conflict have disrupted refined fuel output and caused prices to rise, particularly for diesel fuel, countries are seeking to gain access to more supply.
This week, the International Energy Agency agreed to accelerate the release of oil stocks and to prioritise diesel supplies under a plan launched in March.
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