Business · Energy & Commodities · 1 day ago
China Expected to Cut Diesel Exports as Inventories Tighten
China’s state-run refiners are expected to cut diesel exports this month as inventories tighten.
Energy Aspects lowered its November shipment forecast by 400,000 tons, to 580,000 tons.
The firm said weak export margins also contributed to the reduction.
China gave refiners extra fuel export quotas last month, bringing allocations so far this year to their highest level since 2021.
But officials have monitored monthly shipments more closely since the US-Iran conflict began.
Refiners increased exports in August and September, helping ease pressure on global fuel markets disrupted by conflict in the Middle East and the Russia-Ukraine war.
Exports could rise again if domestic demand weakens, which Energy Aspects expects from mid-November.
China’s state-run refiners are expected to reduce diesel exports this month because inventories are tight, according to Energy Aspects.
The consultancy cut its November diesel-shipment estimate by 400,000 tons to 580,000 tons in a note dated Nov. 5.
Energy Aspects said weaker export margins also contributed to the lower forecast.
The firm said the estimate could be revised upward if domestic demand softens from mid-November.
China allocated refiners additional fuel-export quotas last month, bringing allocations since the start of the year to their highest level since 2021.
- Who
- China’s state-run refiners, according to Energy Aspects.
- What
- They are expected to reduce diesel exports this month.
- When
- November; the forecast was lowered in a note dated Nov. 5.
- Where
- China.
- Why
- Tight inventories and weaker export margins. The curbs could ease if domestic demand softens.
This story does not have two clearly opposing sides.
Chinese refiners increased exports, helping ease pressure on global markets disrupted by conflict in the Middle East and the Russia-Ukraine war.
China allocated refiners additional fuel-export quotas, bringing allocations since the start of the year to their highest level since 2021.
Energy Aspects cut its November diesel-shipment estimate by 400,000 tons to 580,000 tons.
- November diesel-shipment estimate
- 580,000 tons
- Forecast reduction
- 400,000 tons
- Previous quota benchmark
- Highest allocations since 2021
- November gasoline-shipment estimate
- 780,000 tons
- November jet-fuel-shipment estimate
- 2.21 million tons
3 sources
What people are saying
it is possible that estimates will be revised upward