China tightens fuel export restrictions

Last week, during the turmoil in the Middle East, Chinese officials instructed the nation’s largest refineries to avoid finalizing export contracts and to discuss with partners the cancellation of previously arranged shipments. The agency indicates that these recommendations were viewed as non-mandatory and permitted certain shipments in March.

Currently, sources indicate that refiners have been instructed to halt all exports of light petroleum products that have not yet passed through customs. Shipments that did not clear customs by Wednesday can no longer be sent.

The domestic market is mainly served by the Chinese oil refining sector, which is regulated by a system of export quotas for fuel oil products. The initial set of quotas released for 2026 amounted to 19 million tonnes, nearly the same as the year before.

source: bloomberg.com