Chinese refiners suspend October fuel exports to bolster stocks, sources say
USO•Chinese refiners suspended fuel exports for October as Beijing sought to preserve domestic stocks, four people briefed on the matter said. It was unclear whether exports would be permitted after October 7; September shipments included 1.4 million metric tons of diesel, 500,000 tons of gasoline and at least 2 million tons of jet fuel.
1. October exports paused
China did not give major refiners approval to export fuel products beyond Hong Kong and Macau in October, as the country began a week-long holiday. Sources said it was unclear whether Beijing would resume permitting exports after October 7, with the decision potentially depending on domestic inventories and refining output.
2. Refiners cancel shipments
PetroChina cancelled some gasoline and jet fuel shipments planned for October, three sources said. Zhejiang Petrochemical did not schedule oil product shipments during the holiday week, another source said.
3. Inventories and markets
Sources said uncertainty over crude availability and declining local fuel inventories prompted Beijing to prioritize supply security. One analyst estimated commercial gasoil and diesel inventories were about 20 million barrels below a pre-war threshold, with gasoline roughly 9 million barrels short. Asian diesel swap spreads reached a two-week peak on expectations that Chinese export supplies would be absent.
