Falling diesel and gasoline inventories in China could prompt the authorities to reimpose fuel export curbs, Bloomberg reported, citing the latest market data.
According to Chinese commodity market research firm JLC International, gasoline inventories at major state-owned energy companies fell by 2.9% last week to their lowest level since 2022. Diesel stockpiles were down by 2.4% and are now at their lowest point in 15 months.
Energy Aspects analyst Jiana Sun told Bloomberg that, with the domestic market tightening, the risk is rising that Beijing could limit monthly clean product exports to around 1.2 million tons in the fourth quarter.
China already imposed similar curbs in the spring, when the U.S. and Israeli war on Iran raised concerns about fuel supply security for the world’s largest crude oil importer, which is also a major fuel exporter.
In early March, Beijing instructed energy companies to suspend new fuel export contracts and try to cancel already arranged overseas shipments as global fuel markets tightened. The ban took effect immediately and covered all gasoline, diesel, and jet fuel cargoes that had not cleared customs as of March 11. As a result, gasoline and diesel inventories at state refiners climbed to their highest levels since 2025 and 2024, respectively.
A month later, China eased the restrictions, and exports surged in June amid a supply shortfall from the Middle East, where refineries were damaged by drone and missile strikes. That gradual easing continued afterward, driving significant export growth, especially in fuel oil, which reached a 2026 high in June.
If China now moves to curb fuel exports in order to protect its domestic market, it could add to pressure in a global market already dealing with diesel shortages, while demand is moving higher seasonally.
