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China may cut fuel exports again in October as inventories fall

China exported 6.01 million tons of petroleum products in August, but GL Consulting expects October shipments to soften because gasoline and diesel stocks are at seven-year lows.

Reported · Written up by our desk · Energy

OilPrice reports that China could reduce fuel exports again in October as domestic gasoline and diesel inventories have fallen to multi-year lows, which could tighten the global fuel market further.

According to the outlet, fuel exports rebounded in August after Beijing removed mid-July restrictions on exports put in place during the peak of the Strait of Hormuz blockage. Refiners shipped 6.01 million tons of petroleum products in August, up 12.7% from a year earlier, and jet fuel exports reached an all-time high.

OilPrice also notes that exports are expected to remain strong in September, but October could bring lower volumes due to gasoline and diesel inventories sitting at a seven-year low. GL Consulting said domestic supply is already relatively constrained and refiners are likely to prioritize the domestic market.

The outlet adds that tight Chinese fuel inventories are expected to persist through the end of October, supported by firm domestic demand and a recent surge in fuel exports. It also cites seasonal factors, including summer travel boosting gasoline demand and autumn harvesting and pre-season restocking supporting diesel consumption.

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