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China's Net Refined Product Exports Hit Highest Level Since Early 2023, TPH Says

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China's net refined product exports surged to 890,000 barrels per day in August, the highest monthly level since early 2023, TPH Energy Research analyst Matthew Blair said in a Wednesday note.

Net refined product exports stood at 513,000 b/d in July and 640,000 b/d in June, with gasoline, diesel and jet fuel making up a larger share of exports in July.

In July, gasoline, diesel and jet exports reached 59%, or 643,000 b/d, of gross product exports, up from 35%, or 378,000 b/d, in June.

Higher refinery activity and crude imports supported August's export increase, with state-owned refiners lifting utilization to 74% from 70% and teapots to 51% from 47%.

China's crude imports also rose to 8.4 million b/d from 7.2 million b/d, while September utilization climbed further to 76% for state-owned plants and 55% for teapots.

However, higher crude prices have pushed teapot refining margins back to breakeven, Blair added, citing Bloomberg, as the US blockade of Iranian exports has tightened crude availability.

A pullback in teapot operating rates could worsen the global diesel shortage, Blair said.

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