Chinese refiners have suspended exports of gasoline, diesel and jet fuel to destinations outside Hong Kong and Macau, in a move expected to further tighten already strained global fuel markets.
According to Reuters, four people briefed on the matter said Beijing had not authorised major refiners to export oil products to other destinations in October as China seeks to preserve domestic fuel inventories.
State-owned PetroChina has cancelled some gasoline and jet-fuel cargoes scheduled for October, while it remains unclear whether Beijing will resume broader export approvals after the country’s week-long holiday ends on October 7.
China had previously tightened fuel exports in March following disruptions to Middle Eastern crude supplies, before relaxing the restrictions in July and managing gasoline, diesel and jet-fuel shipments on a monthly basis.
The latest move comes as global fuel supplies face additional pressure from disruptions linked to the Middle East conflict and attacks on Russian oil-refining infrastructure.
Russia has also extended its ban on diesel exports by fuel producers until the end of October, citing the need to maintain stability in its domestic fuel market.
Oil prices responded to the developments, with Reuters reporting that the new front-month December Brent contract rose about 2% on Thursday to around $99.77 per barrel, while earlier Brent contracts had traded above $100.
Source: Reuters
Share this content:
About The Author
