Camilla Jessen
Middle East conflict forces China to lock down fuel exports.
China has ordered its major oil refiners to stop exporting diesel and gasoline as fighting in the Middle East begins to disrupt global energy shipments.
The move signals growing concern in Asia over fuel shortages as supply routes from the Persian Gulf come under pressure.
According to Bloomberg, China’s National Development and Reform Commission (NDRC) instructed refiners to immediately suspend exports of refined fuel.
Officials reportedly told companies to stop signing new export contracts and begin negotiating the cancellation of existing shipments.
The measure is aimed at protecting domestic fuel supplies as global energy markets react to the conflict.
Limited exceptions
The export ban includes gasoline and diesel shipments leaving China.
However, limited exceptions remain in place for supplies heading to Hong Kong and Macau.
Exports of jet fuel and bunker fuel stored in bonded facilities are also not included in the restrictions.
Several of China’s largest energy companies operate under government export quotas.
These include PetroChina, Sinopec, CNOOC, Sinochem Group and Zhejiang Petrochemical.
China is one of Asia’s largest suppliers of refined petroleum products, though most of its refining capacity is designed to meet domestic demand.
Protecting domestic supply
Beijing already tightly controls fuel exports through a quota system managed by the Ministry of Commerce.
Authorities have previously reduced shipments during periods of global instability, including after Russia’s invasion of Ukraine in 2022.
Analysts say the latest decision reflects fears that Middle Eastern supply disruptions could leave Asian markets short of fuel.
The conflict has already slowed oil shipments from the Persian Gulf, one of the world’s most important energy corridors.
China relies on the region for nearly half of its crude oil imports.
Refiners in Japan, India and Indonesia are also reportedly cutting production rates and suspending some exports to protect national reserves.
At the same time, China has increased its imports of discounted Russian oil.
Bloomberg reported that tankers linked to Russia’s so-called shadow fleet delivered nearly five million tons of crude to Chinese ports in January.
Analysts expect China’s reliance on these shipments to grow if Persian Gulf supplies remain disrupted.
Sources: Bloomberg
