China approved an additional 1.3 million tons of fuel export quota in July, easing measures previously used to mitigate the risk of war in the Middle East.
On July 8, 2569 at 15.33:XNUMX p.m., Bloomberg News reported that China began easing restrictions on fuel exports, approving export licenses for gasoline, diesel, and jet fuel to several refineries in July. After previously suspending exports to protect domestic energy security amid tensions from war in the Middle East.
Sources close to the matter have revealed that: At least three refineries were authorized to export petroleum products this month, including Zhejiang Petroleum & Chemical Co., a major private refinery in which Rongsheng Petrochemical Co. holds a majority stake, as well as some state-owned refineries.
Traders reported that Chinese authorities approved export quotas for oil products totaling 1.3 million tons in July. Although this is still below the 2.5 million tons level in February, prior to the war, it is a clear sign that Beijing is beginning to ease export controls after having used a strict quota system for so long.
China suspended fuel exports in early March to stabilize domestic supply amid concerns that conflicts in the Persian Gulf could impact crude oil imports. However, by the end of April, the energy situation began to stabilize, allowing state-owned refineries to gradually apply for licenses to resume exports. And since May, China has allowed limited fuel exports to some countries experiencing energy shortages.
Bloomberg previously reported that the Chinese government had informed some state-owned refineries that they could expand fuel exports to more countries, beyond the previously restricted destinations.
Although Rongsheng Petrochemical has not yet commented on the news, and the Chinese Ministry of Commerce has not responded to media questions, the developments are already being felt in the transportation market. According to sources, Chinese refineries have contacted several ship owners and shipping brokers this week to find oil tankers to transport gasoline to overseas markets.
China's increasing export trend is also beginning to impact regional oil markets, with the price spread of gasoline in Asia against Dubai crude oil narrowing to near its lowest level since late March. This reflects pressure on regional refining margins, as China is one of Asia's largest fuel exporters, and the Chinese government's export quotas significantly influence the supply and prices of oil in regional markets.
refer : www.bloomberg.com
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