BEIJING: China has ordered an immediate halt to refined fuel exports for March as authorities move to prevent a possible domestic fuel shortage linked to the ongoing U.S.-Israeli war on Iran, according to four sources familiar with the matter.
The directive was issued by the National Development and Reform Commission and covers shipments of gasoline, diesel and aviation fuel. The restriction applies to cargoes that had not cleared customs as of March 11.
The decision expands on an earlier move by Beijing last week, when refiners were advised not to sign new export contracts and to try cancelling previously agreed shipments. However, jet fuel used for aviation bunkering is not included in the ban, two of the sources said. The commission did not immediately respond to requests for comment.
China, the world’s largest oil importer and a major fuel exporter, had originally planned to increase exports in February and March to take advantage of stronger profit margins during the seasonal slowdown in domestic demand following the Lunar New Year holidays.
Traders had forecast March fuel exports of around 2.2 million to 2.3 million tonnes of gasoline, diesel and jet fuel, excluding aviation bunkering volumes. That estimate was about 300,000 to 400,000 tonnes higher than February projections.
So far in March, China has shipped only about 50,000 metric tonnes of gasoline (around 422,500 barrels), 300,000 tonnes of diesel (about 2.24 million barrels) and 300,000 tonnes of seaborne jet fuel (roughly 2.36 million barrels), according to ship tracking data and trade sources.
Meanwhile, the United States has announced it will release 172 million barrels of oil from its Strategic Petroleum Reserve in an effort to ease global prices that have surged due to the conflict involving Iran.
