China has partially lifted the fuel export restrictions it imposed earlier this year, letting refiners ship 2.7 million tons of gasoline, diesel, and jet fuel abroad this month. The move unwinds a ban Beijing put in place after the Strait of Hormuz closed, and follows a domestic stockpile buildup that had already eased supply concerns.
China has partially lifted the fuel export restrictions it imposed earlier this year, allowing refiners to export 2.7 million tons of oil derivatives to destinations excluding Hong Kong and Macau, Reuters reported, citing unnamed sources with knowledge of the matter. The temporary easing takes effect this month, and refiners that fail to secure purchase deals for the full allotment can roll leftover volumes into September.
The new quotas cover gasoline, diesel fuel, and jet fuel. As recently as late June, reports said Beijing would let state refiners export just 800,000 tons of refined fuels in July.
A ban born from the Strait of Hormuz closure
China banned all fuel exports days after the conflict in the Middle East erupted and shut the Strait of Hormuz, deepening an already severe fuel supply crunch. Some volumes still shipped to certain Southeast Asian countries despite the ban.
At the time, Beijing told energy companies to suspend new export contracts and try to cancel shipments already arranged abroad. Global fuel markets tightened as the war froze most traffic through one of the world's biggest oil and fuel chokepoints.
Record stockpiles opened the door to a rollback
In April, China eased the restrictions as domestic fuel stockpiles soared, easing concern about the security of supply for its own market. That cushion stemmed in part from China's stockpile of crude oil, estimated at more than a billion barrels at the start of the Middle East war.
Exports had already surged before the latest move
By June, China's fuel exports had jumped, with fuel oil sales abroad surging 18% year over year to reach 577,000 barrels a day, the highest level since the start of 2026, as buyers worldwide scrambled to secure the fuel that powers ships.
Source: Investing.com
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