MARKET STRUCTURE · ASIA
China bans exports of diesel, petrol and jet fuel
Change
China has banned exports of diesel, petrol and jet fuel until at least the end of March.
Why it matters
China has imposed a ban on exports of diesel, petrol and jet fuel that is in force until at least the end of March. The ban curbs fuel exports that totalled about US$22 billion last year. China hosts the world’s largest refining sector and functions as a swing supplier whose exports rise when domestic demand falls and export margins are attractive. Several Gulf refineries that ship fuel to Asia have shut after disruptions to shipping via the Strait of Hormuz, and Asian refiners are seeking alternative crude and fuel sources.
Implications
- · Reduction of Chinese clean‑fuel export volumes available to Asian buyers, tightening immediate regional supply.
- · Increased pressure on Asian refiners and traders to secure alternative crude and fuel shipments.
- · Tighter procurement conditions for industrial and transport fuel in Asia when combined with Gulf refinery shutdowns and shipping disruptions.
Who is affected
- · Asian refiners and fuel traders
- · Industrial and transport fuel purchasers in Asia
- · Refinery and shipping operators serving Asian fuel trade
What to watch
- · Ban remains in force until at least the end of March
Source
Topics
Business & Markets Supply Chain & Logistics Energy & Power Oil & Gas