Chinese refiners suspend October fuel exports, one cancels cargoes: Report
PetroChina canceled several October shipments as Beijing kept a lid on exports to protect domestic fuel stocks, traders said.
- On Thursday, Chinese refiners suspended fuel and oil-product exports beyond Hong Kong and Macau until further notice. State oil major PetroChina canceled several October gasoline and jet-fuel cargoes, tightening global energy markets.
- Commercial gasoil and diesel inventories sit around 20 million barrels below required thresholds, with gasoline roughly 9 million barrels short, forcing Beijing to prioritize domestic supply. Zameer Yusof of Kpler noted refiners are likely to prioritize domestic markets due to constrained supply.
- Michal Meidan of the Oxford Institute for Energy Studies said "International markets are an afterthought" when domestic stocks are low. This export pause follows President Donald Trump urging President Xi Jinping to stabilize global fuel supplies during a recent visit.
- Asian diesel swap prices reached a two-week peak on expectations of absent Chinese supply, impacting importers like Bangladesh. Singapore, Malaysia, Australia, Vietnam, and the Philippines now face potential shortages as refiners skip scheduling shipments during the Golden Week holiday.
- With the holiday ending October 7, it remains unclear if Beijing will resume exports, as resumption depends on inventory levels. Energy Secretary Chris Wright noted Washington expects announcements soon from Europe on new diesel supplies after urging Germany and France to draw down inventories.
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China has one of the few pillows available to ease the global gas oil crisis. Chinese refineries are operating well below the maximum capacity and exports had begun to increase. But when the market needs more barrels, Beijing decided to stop sales abroad.
Chinese refineries suspended exports of petroleum products to destinations outside Hong Kong and Macao in October, pending new indications from Beijing. (ANSA)
Oil prices rose sharply following reports of the transfer of additional US forces to the Middle East and China ' s decision to suspend fuel exports
Oil prices rose by more than $4 per barrel on Thursday, following reports that the United States would send more troops and other aircraft to the Middle East, in conjunction with China ' s suspension of exports of petroleum products, raising concerns about the worsening global fuel shortage.
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