China Resumes Refined Fuel Exports Amid Easing Stockpile Pressures

Refiners are currently scheduling shipments of roughly 3 million metric tons of gasoline, diesel, and jet fuel for the month. This volume aligns with export levels recorded during the same period last year. Notably, the move includes a private refiner majority-owned by Rongsheng Petrochemical, which is restarting its export program after a four-month hiatus.

The government’s decision follows a period of significant volatility. When regional conflict previously threatened the Strait of Hormuz, Beijing mandated that energy companies cancel or suspend export contracts to insulate the domestic market from potential shortages. However, the subsequent accumulation of record crude oil stockpiles—surpassing one billion barrels—has effectively mitigated those security concerns. While state-owned entities were permitted limited export quotas earlier this year, the current removal of broader restrictions provides a necessary outlet for surplus inventory, though it remains unclear if these allowances will persist into August.