The policy shift arrives just one week after state-owned energy majors abruptly canceled scheduled export cargoes, citing domestic inventory concerns. Data from Kpler indicates that Chinese commercial diesel and gasoil stocks remain 20 million barrels below pre-war levels, while gasoline reserves stay 9 million barrels short of the government’s target threshold.
China Resumes Fuel Exports to Ease Global Supply Pressure
Beijing has authorized 3.7 million metric tons of fuel exports for October, reversing a brief suspension that sent diesel prices to record highs. Trading sources confirm the move includes gasoline, diesel, and jet fuel, providing a potential buffer for global markets currently struggling with a severe supply-demand imbalance.
Analysts suggest the initial suspension reflected Beijing’s anxiety regarding crude flows through the Strait of Hormuz. June Goh of Sparta Commodities noted that restricting quotas served as a defensive signal against potential disruptions in Middle Eastern supply routes. Despite the volatility, China had ramped up exports significantly over the summer, with August volumes reaching 6.01 million tonnes—a year-on-year increase of 12.7% and the highest level seen since March 2024. While this latest authorization offers a reprieve for global diesel markets, the relief remains contingent on whether Beijing maintains these export levels amidst ongoing geopolitical instability.
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