China orders top refiners to halt diesel and petrol exports
Change
China ordered its largest oil refiners, through the National Development and Reform Commission, to immediately suspend diesel and petrol exports, stop signing new export contracts and negotiate cancellation of already-agreed shipments.
Why it matters
The order constrains cross-border deliveries of refined motor fuels and forces refiners to reassign export volumes to domestic distribution or bonded storage. Regional seaborne supply of diesel and petrol from China will be reduced, complicating deliveries for buyers that rely on Chinese exports.
Implications
- • Refinery export and trading desks at PetroChina, Sinopec, CNOOC, Sinochem Group and Zhejiang Petrochemical must halt new export contracts and open immediate negotiations to cancel existing diesel and petrol shipments.
- • Refinery operations planners and logistics managers must reallocate consignable diesel and petrol toward domestic distribution channels or bonded storage and revise export schedules.
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Source
Topics
Trade & Tariffs Regulatory Actions Supply Chain & Logistics Oil & Gas