Chinese refiners reportedly suspended exports of oil products to regions beyond Hong Kong and Macau until further notice from Beijing. Sources told Reuters that state oil major PetroChina cancelled on Wednesday a handful of its gasoline and jet fuel shipments that were planned for October.
Meanwhile, another major refiner, privately controlled Zhejiang Petrochemical Corp (ZPC), skipped scheduling any oil product shipments during the holiday week, the fourth source told Reuters.
PetroChina, ZPC and the National Development and Reform Commission has not commented on the report yet. The move came as China looks to safeguard domestic supplies amid the
According to the report, the suspension of Chinese products exports will further constrain global markets that are grappling with the loss of supplies from the Middle East and Russia, and could drive prices in some countries to new highs.
It is not clear if Beijing would resume permitting refiners’ exports after the holiday ends on October 7, the sources were quoted as saying, adding that it could depend on domestic fuel inventories and refining output.
Which other countries have halted or are mulling halting energy exports?
Russia extended its ban onfor fuel producers until October 31, the government said on Wednesday, as per the Moscow Times.
“The decision was taken to maintain stability in the particularly given the elevated demand for motor fuel during the harvest season,” the report cited a government press release.
Russia has repeatedly imposed curbs on gasoline and diesel exports to rein in rising fuel prices and tackle shortages triggered by Ukrainian drone attacks on oil refineries.
Ukraine’s military claimed last week that it knocked out more than 45% of Russia’s refining capacity.
Earlier in September, oil company told at least two European refining customers they will receive no crude oil next month following an attack on Saudi Arabia’s key pipeline to the Red Sea.
Saudi Arabia had informed European customers that some crude cargoes would be cancelled after drone attacks forced the shutdown of its East-West pipeline, damaging three pumping stations and disrupting oil loadings at the Red Sea port of Yanbu.
Later on September 29, Reuters reported, citing sources that Saudi Arabia has resumed oil tanker loadings from its Red Sea port of Yanbu after restarting operations on the East-West Pipeline.
State oil giant Saudi Aramco notified customers this week about its October loading schedule from Yanbu, an Asian refining source said. The refiner loaded a cargo from Yanbu late last week.
European Space Agency satellite pictures also pointed to a resumption of loading.
“ESA satellite imagery captured over the Red Sea on September 27 shows Saudi Arabia loading nearly 10 million barrels of crude oil at Yanbu and Al Muajjiz,” vessel-tracking firm TankerTrackers.com wrote in a post on X on Tuesday.
Drone attacks, which Saudi Arabia blamed on Iraqi militias, forced the kingdom to shut the pipeline on September 11, halting crude exports from Yanbu. Pipeline operations resumed last Tuesday.
US President Donald Trump said on Wednesday, September 30, that he has conversations about banning diesel exports “every day” as the White House races to curb soaring energy prices.
Speaking from the Oval Office, Trump said an export ban would “have a negative impact on gasoline” prices, but could lower diesel costs.
He said Russia’s war in Ukraine, with strikes from either side impacting energy production and exports, is the main cause of rising diesel prices. He added: “We think we’re in a very good place.”
According to Reuters, the Trump administration also weighed a blanket diesel export ban, voluntary export limits by refiners and allowing broader sales of tax-exempt diesel.
The Trump administration and Republican candidates have been under pressure to bring down fuel costs as November’s midterm elections approach and Trump’s economic approval ratings remain under strain.
Energy Secretary Chris Wright said the disruptions were more widespread.”We’ve lost some diesel exports from the Middle East, although we’re restoring those, and we’ve lost diesel exports from China,” he was quoted by Reuters as saying. “So that’s a lot of interruptions.”
He said the administration expected announcements soon from Europe about new diesel supplies. The White House has urged the European Union to release emergency diesel stocks to help ease prices, Reuters reported.
