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Market Chatter: China to Raise Refined Fuel Export Quotas in July, Anticipating Iranian Imports

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China, one of the largest fuel exporters in Asia, is set to raise the amount of refined fuel that its state-owned refiners are allowed to export starting from July, according to a Reuters report, citing three industry sources who were briefed on the plan.

The move is expected to ease regional supply constraints after Beijing restricted exports outside Hong Kong and Macau to just 400,000 and 500,000 metric tons in April and May, according to customs data, as the Iran war slashed crude shipments globally.

The allowance was set at 800,000 metric tons for July, during a meeting between government officials and state refiners, as tensions begin to ease in the Middle East.

Even with this increase, volumes are will be 40% below the average for July last year, with energy flows yet to fully recover from the conflict.

China's state-owned oil refiners are reportedly considering resuming oil purchases from Iran, according to Reuters, citing several industry sources.

This would mark the first purchase by the country's refiners since 2019, after the US waived sanctions against Iran's oil and petrochemical products earlier this week. Experts, however, have pointed out that alternative supply sources and waning domestic demand could cap this momentum.

Neither China's National Development and Reform Commission, nor the China Petroleum and Chemical Industry Federation immediately responded 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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Oil & Energy

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