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Chinese Refiners Suspend October Fuel Exports
Confirmed
In Short: Chinese refiners have suspended fuel exports to regions outside Hong Kong and Macau until further notice, according to sources familiar with the matter. This move comes as China begins a week-long national holiday on Thursday without approving October exports.
The decision to halt exports is driven by concerns over domestic fuel availability, as China's own fuel stocks have dropped. State-owned refiners have already cancelled several gasoline and jet fuel cargoes planned for October.
The suspension of fuel exports does not increase the crude oil supply, as refinery throughput remains constrained. Middle East crude flows are nearing prewar levels, but fuel supplies, particularly gasoline, remain lower.
Brent December futures reversed a 1% intraday decline to trade 2.4% higher at $100.36 per barrel, while WTI November futures rose 2.5% to $92.70 after the news of the export suspension.
According to UBS analyst Giovanni Staunovo, the Chinese export ban suggests concerns about domestic product availability. It remains to be seen whether the measures will support higher crude imports after recent drawdowns in Chinese crude and fuel stocks.
The halt in exports could place additional strain on global fuel markets and drive prices higher in some countries as traders face reduced supplies from key producing regions.
Chinese refiners have the largest refining capacity in the world but usually export less fuel than India or South Korea. The decision to suspend exports may depend on domestic fuel inventories and refinery output after the holiday ends on October 7.
The shortage in diesel, gasoline, and jet fuel is pushing crude oil prices higher, as US refiners are short of fuel to sell rather than barrels to run.
Restored crude exports from the Middle East do not increase fuel supply when refinery throughput remains constrained, leading to a potential tightening of global fuel markets.
What's confirmed
- Chinese refiners have suspended fuel exports to everywhere except Hong Kong and Macau until Beijing says otherwise, people familiar with the matter said on Thursday.
What's still developing
- Saudi Arabia restarted its East-West Pipeline and tanker loadings at Yanbu, lifting Middle East crude exports to 17.5 million barrels per day, 98% of prewar levels on a 10-day average.
- Product export restrictions further reduce the refined fuel available to importing markets.
- Goldman Sachs put Gulf exports at 23.3 million barrels per day, in line with the 2025 average, while European diesel refinery margins held near $80.05 per barrel after reaching a record $95.
- China started a week-long national holiday on Thursday without approving October exports.
- Crude Oil has turned an early loss into a rally to near $91.50 since reports that China's refiners have stopped selling fuel abroad.
- A state-owned refiner cancelled a handful of October gasoline and jet fuel cargoes on Wednesday, most of them deals it had agreed within the previous two weeks.
- The halt came less than a week after President Trump asked President Xi in Washington to help steady global fuel supplies.
- Rebuilding those stocks takes Crude Oil, and Asian diesel margins at their highest in a week pay refiners everywhere to run harder.
- Chinese refiners suspend exports of oil products to regions beyond Hong Kong and Macau until further notice Oil prices rose around 2% on Thursday after China suspended oil product exports, potentially tightening fuel markets already coping with supply shortages globally, while investors continued to assess renewed diplomatic efforts to end the US-Iran war.
- 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.
- 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.
- 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.