Chinese refiners suspend October fuel exports to protect domestic stocks, sources say

Chinese refiners have suspended oil-product exports for October, four people briefed on the matter told Reuters on Thursday, 1 October, as Beijing seeks to preserve domestic stocks — a move that could further tighten already strained global fuel markets.

Export pause and holiday timing

China began a week-long National Day holiday on Thursday without giving major refiners a green light to ship diesel, gasoline and jet fuel to destinations other than Hong Kong and Macau, the sources said. It was unclear whether Beijing would resume permits after the holiday ends on 7 October, depending on domestic inventories and refining output. State oil major PetroChina cancelled a handful of gasoline and jet-fuel shipments planned for October, three sources said, while privately controlled Zhejiang Petrochemical skipped scheduling product shipments during the holiday week, a fourth source said. China’s National Development and Reform Commission did not immediately respond during the holiday, Reuters reported.

Market impact and context

Beijing had restricted fuel exports in March after Middle East supply disruption and later managed shipments monthly after easing curbs in July. Michal Meidan of the Oxford Institute for Energy Studies said the government’s focus “remains domestic supply security,” with international markets “an afterthought.” Kpler analysis cited by Reuters put commercial gasoil/diesel inventories roughly 20 million barrels below a pre-war threshold and gasoline about 9 million barrels short. October–November Asian diesel swap spreads rose on expectations of absent Chinese export supply. Singapore, Malaysia, Australia, Vietnam, Bangladesh and the Philippines were among top destinations for Chinese fuel exports in September, trade data showed.