-- China is selectively exporting fuel to Asian countries, despite an export ban imposed in mid-March to prioritize domestic market needs amid Middle East supply disruptions, according to a Reuters analysis Monday, citing shipping data.
In March, China still exported gasoline, diesel, and jet fuel to markets including Singapore, Malaysia, the Philippines, Australia, Vietnam and Bangladesh, totaling 436,000 barrels per day, based on Vortexa data, cited by the news agency. The volume was lower than February's 551,000 b/d.
Kpler data reportedly showed non-Hong Kong exports dropped to 250,000 b/d in March from 375,000 b/d in February.
Meanwhile, fuel shipments to Hong Kong were reportedly maintained, with shipping data showing jet and diesel exports only slightly changed in March at up to 166,000 b/d, as refiners took advantage of high export margins.
Reuters calculations based on customs data showed that China's exports of the three fuels to all markets, including Hong Kong, steadied month over month to 2.58 million metric tons in March. Gasoline shipments surged 68%, while jet fuel declined 13.1% and diesel remained flat.
Kpler analyst Zameer Yusof, as cited by Reuters, said China was making "deliberate allocation decisions" despite the restrictions, as the government intended to work with Southeast Asian nations to secure supply. Flows to Malaysia and Vietnam were nearly kept at pre-ban levels, according to Yusof.
In April, exports are expected to decline as the government tightens controls on shipments, except for those bound for Hong Kong, sources told Reuters.
China's National Energy Administration did not immediately respond to' request for comment.