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Market Chatter: China's Fuel Exports Fall to Decade Low in April Amid Government Restrictions

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China's fuel exports fell to their lowest in a decade in April, slowed by government curbs to prop up domestic supply amid disruption from the closure of the Strait of Hormuz, Reuters reported, citing customs data published Wednesday.

The fourth-largest Asian fuel exporter shipped small amounts of gasoline, diesel and jet fuel to Southeast Asia and other regions during the month.

In response to fuel requests from trading partners, Beijing had issued limited waivers to countries like Bangladesh, Myanmar, Vietnam, and Sri Lanka in late March, the report said.

China's gasoline exports fell to a record April low of 23,409 metric tons, with Myanmar the only recipient of the fuel besides Hong Kong and Macau. Myanmar received 3,000 metric tons or 25,350 barrels of gasoline from China, a 65% decline from March.

China exported 231,542 tons or 1.725 million barrels of diesel in April, recording a monthly decline of 69%. The Philippines received 39,468 tons of the fuel which was 82% lower than its March procurement from China, while Bangladesh received 10,000 tons, a 75% monthly reduction.

There were no diesel exports to Singapore, while Myanmar secured 5,900 tons last month, a 73% monthly drop, the report said.

About 34% of China's overall diesel exports in April were made up of biodiesel.

China shipped only 962 tons of jet fuel in April to its largest buyer, Australia. However, after lobbying by Canberra, jet fuel arrivals to Australia from China are expected to increase to over 100 million liters, or 80,000 tons from early June.

has reached out to China's National Energy Administration for a comment.

(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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