US EditionChina Tells Top Refiners to Halt Diesel and Gasoline Exports
China ordered suspension of new diesel and gasoline export contracts to protect domestic fuel supply amid a Middle East conflict disrupting tanker traffic at a key oil chokepoint.
- The National Development and Reform Commission told PetroChina, Sinopec and CNOOC to suspend new export contracts and cancel shipments, citing immediate implementation amid market tightening.
- The decision followed a massive escalation of the US, Israel, and Iran conflict that paralyzed logistics routes and effectively froze tanker traffic through the Strait of Hormuz, while China's Foreign Ministry said Beijing will take necessary measures to protect energy security as hostilities pushed Brent oil above $82 per barrel.
- Reuters cited LSEG data showing Chinese refiners exported about 70,000 tons of jet fuel, 35,000 tons of diesel, and 35,000 tons of gasoline since the start of the month, following export quotas issued in December to Sinopec and CNPC.
- Experts warn the move could provoke severe shortages across the Asia-Pacific, where many countries depended on Chinese refiners and exporters, and the suspension risks pushing China toward alternative suppliers such as Russia.
- Authorities carved out bunkering and certain aviation fuel contracts while ordering other exports halted, excluding supplies to Hong Kong and Macau and aviation fuel in customs warehouses; American oil transport costs have reached a historical high.
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China's government has ordered the country's largest refiners to suspend exports of diesel, gasoline and other refined products. They should also refrain from new contracts and begin negotiating cancellations of existing ones, Bloomberg reported on Thursday.
Chinese authorities have asked their main refiners to stop exporting diesel and gasoline, as the war in the Middle East poses a risk of supply shortages, the American agency Bloomberg reported today.
The Chinese government ordered the country's main refineries to suspend exports of diesel and gasoline, while the escalation of the conflict in the Persian Gulf disrupts the arrival of crude oil from one of the world's largest producing regions.Although the country is only the third largest supplier of oil products in the region — its vast refining sector primarily serves domestic demand — the restrictions imposed just six days after the outbrea…
Asia fills the reservoir, fearful of a new oil crisis, after Iran fulfilled its word to close the Strait of Ormuz if it were to be attacked again. The two most forward-looking countries, China and Japan, are already taking steps to extend the life of their fuel stocks, as Thailand, one of the most vulnerable is doing. Continue reading...
Analysts warn that a prolonged blockade of energy transport could further increase oil prices
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