Chinese refiners have halted October fuel exports as concerns over tighter supplies grow, putting additional pressure on global fuel markets.
Chinese refiners have temporarily suspended exports of petroleum products to destinations outside Hong Kong and Macau following directives from Beijing, according to four people familiar with the matter.
The decision comes as China moves to safeguard domestic fuel supplies amid mounting pressure on international markets linked to disruptions in supplies from the Middle East and Russia.
A major state-owned oil company cancelled several gasoline and jet fuel shipments planned for October on Wednesday, three sources said. The company had secured agreements for most of the cargoes during the previous two weeks, the sources added.
The suspension could place additional strain on global fuel markets and drive prices higher in some countries as traders face reduced supplies from key producing regions.
China began a week-long national holiday on Thursday without giving major refiners at the country’s largest refining hub approval to export oil products to destinations beyond Hong Kong and Macau.
Zhejiang Petrochemical Corp (ZPC), another major privately owned refiner, also made no plans to export oil products during the holiday period, according to a fourth source.
PetroChina, ZPC and China’s National Development and Reform Commission had not immediately responded to requests for comment from Reuters as the country entered the holiday break.
It remains unclear whether Beijing will reinstate export approvals after the holiday ends on October 7. According to the sources, the decision may depend on domestic fuel inventories and refinery output.
Meanwhile, Asian diesel refining margins rose to around $75 a barrel, their highest level in a week. The October-November price spread also climbed to a two-week high as concerns about tighter fuel availability intensified.
