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Market Chatter: China Eases Fuel Export Curbs for 2nd Straight Month, Flows Top 2025 Average

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China has relaxed curbs on refined fuel exports for the second straight month in August, according to Reuters, citing five industry sources.

In an unexpected move, Beijing permitted refiners to temporarily export 2.9 million metric tons of refined fuel for this month, to destinations outside of Hong Kong and Macau, helping recover flows back to pre-war levels.

The world's largest importer of crude oil had slashed exports from March through June, in a bid to protect supplies, as the ongoing conflict in the Middle East disrupted oil flows, leading to steep cuts in the Asian giant's oil imports over the past couple of months.

Refiners are also being allowed to roll over some unused allowances from August into September, as the timeline was too tight for spot sales, according to three sources familiar with the matter.

Including shipments to Hong Kong and jet fuel retailing at China's international airports, the country's gasoline, diesel and jet fuel exports for the month are expected to be between 3.6 million and 3.7 million tons, ahead of the 3.04 million-ton monthly average in 2025.

Analysts and traders now expect China's refinery throughput to rise by at least 200,000 to 300,000 barrels per day, from July's total estimate of nearly 13 million barrels per day.

China's National Development and Reform Commission did not immediately respond to' request for a comment on this story.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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