FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: China's Refined Oil Exports Rise but Restrictions Limit Volumes

By

China's refined oil product exports outside of Hong Kong and Macau jumped 40% in May versus April, but dropped 69% from year-ago levels due to export restrictions linked to the US-Iran war, a Reuters analysis citing customs data said on Saturday.

The country's gasoline exports rose to 32,838 tons in May, after falling to a 10-year low of about 23,400 tons in April, as it shipped cargoes to Myanmar, the report said.

Diesel shipments, including biodiesel, reportedly jumped month over month by 53%, with 77,079 tons shipped to Southeast Asian countries and 20,255 tons to Australia, the only non-Asian importer of China's diesel.

Jet fuel exports to regions excluding Hong Kong and Macau slumped year over year by 61% to 499,388 tons, but grew 20% from April levels, with Vietnam receiving the largest volume at 97,900 tons, and Australia taking 79,000 tons, Reuters said.

was unable to reach the customs authority for confirmation or 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.)

Related Articles

Commodities

Weekly US Natural Gas Prices Advance on Bullish Storage Data, LNG Feedgas Recovery

US natural gas markets ended the week higher, supported by a lower-than-expected storage build and a rebound in liquefied natural gas export feedgas flows.In the futures market, the Nymex front-month contract rose to $3.20 per million British thermal units, from $3.04/MMBtu on June 12.Natural gas spot prices rose by $0.06/MMBtu to $3.32/MMBtu during the week ended June 17, from $3.26/MMBtu the prior week, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released Thursday.Prices were mixed across major regional hubs, ranging from a $0.51/MMBtu decline at Algonquin Citygate to a $2.84/MMBtu increase at the Waha Hub, which turned positive for the first time since early February, according to Natural Gas Intelligence.The gain at Waha was attributed to increased demand for space cooling in Southern California, with natural gas-fired generation in the state more than doubling, up 106% from the prior week.US LNG feedgas flows, which had been under pressure in recent weeks due to spring maintenance at several leading LNG facilities, posted a strong recovery this week.Throughout this week, flows averaged over 19 billion cubic feet per day, compared to 17 Bcf/d last week, and the 30-day moving average of 18.01 Bcf, according to the Bloomberg LNG Feedgas Model.The net injection into storage for the week ended June 12 was 73 Bcf, down from 108 Bcf the prior week, bringing total gas inventories to 2,759 Bcf, according to EIA data.The net build was significantly below forecasts for 82 Bcf in net injections for the week, but was in line with the five-year average for this period, at 73 Bcf, according to data compiled by Investing.com, providing a bullish signal for the markets.All regions reported a net injection during the week, with inventories rising to 532 Bcf in the East and 638 Bcf in the Midwest, or 1% and 4% higher than their respective five-year averages.At 2,759 Bcf, US working gas inventories were 29 Bcf, or 1% below the corresponding levels a year ago, while being 151 Bcf, or 6% above the five-year average for this period.According to Pinebrook Energy Advisors, the current storage situation remains healthy heading into peak summer, while noting that the "tight underlying balance would become more important if significant heat starts showing up in the forecast."Weather forecasts indicate above-normal temperatures across roughly two-thirds of the country from June 26 to July 2, according to the National Weather Service, a trend expected to boost cooling demand and gas-fired power generation.A total of 36 LNG carriers departed US ports during the week, up from 34 the previous week, with a combined capacity of 133 Bcf, 4 Bcf higher than a week earlier.Meanwhile, the US gas rig count increased by one from 121 the previous week to 122 in the week ending June 18, according to data from Baker Hughes (BKR) released Thursday. That compares with 111 gas rigs in operation in the US a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by seven to 749 from 742 the previous week.In international markets, European TTF gas prices averaged $15.11/MMBtu for the week ended June 17, $1.54/MMBtu lower than the previous week. Meanwhile, the Japan-Korea Marker averaged $17.66/MMBtu, about $1.19/MMBtu below the prior week.

$BKR
Commodities

America's Power Praises FERC on New Grid Connection Rules

America's Power, a coal industry trade group, praised the US Federal Energy Regulatory Commission in a Friday statement on the Commission's decision to order major grid operators to justify or revise rules governing how large electricity users connect to the power grid.On Thursday, FERC ordered six regional grid operators to justify or revise their large-load connection rules within 60 days and to submit generation adequacy reports within 30 days.America's Power President and CEO Michelle Bloodworth said: "America's Power commends Chairman Swett and FERC for taking action to connect new large electricity customers to the grid, while protecting existing customers from increased costs and enhancing grid reliability.The commission issued Section 206 show-cause orders to all six Regional Transmission Organizations and Independent System Operators, directing them to justify existing tariffs or propose revisions for large-load customers, including data centers and manufacturers.FERC said the initiative aims to accelerate large-load integration while preserving reliable and affordable electricity service.

Commodities

Vantage Drilling Approves Merger With Eldorado Drilling

Vantage Drilling International shareholders approved a proposed merger with Norway's Eldorado Drilling at a special general meeting held June 18, the company said in a statement Thursday.Under the approved terms, Vantage, a Bermuda-based drilling contractor, will survive the transaction as a wholly owned subsidiary of Eldorado Drilling.Completion of the merger remains subject to customary conditions and approvals.