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China's Net Fuel Product Exports Rise in June Despite Lower Crude Imports, TPH Says

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China's net exports of refined petroleum products edged higher in June even as crude oil imports and refinery activity declined, TPH Energy Research analyst Matthew Blair said in a note on Wednesday.

Net product exports rose to 641,000 barrels per day in June, up from 489,000 b/d in May and 320,000 b/d in April.

A detailed breakdown of exports by fuel type is expected to be released in the coming weeks. In the previous two months, exports were dominated by jet fuel and fuel oil, while gasoline and diesel shipments remained relatively small.

The increase in exports came despite crude oil imports falling to 7.2 million b/d in June from 7.8 million b/d in May. Refinery utilization at independent teapot refiners also declined to 46% from 54% over the same period, while utilization at state-owned refineries was unchanged at 67%.

Looking ahead, Blair said media outlets have reported that authorities granted new gasoline and diesel export quotas to major refiners, including Zhejiang and Rongsheng. However, refinery operating rates have yet to show a corresponding increase.

Utilization at state-owned refiners remained flat month over month, while independent refinery utilization slipped further to 45%, suggesting any increase in fuel exports may take time to materialize.

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