Reuters: Chinese refineries suspend oil product exports for October

Chinese refineries have suspended oil product exports for October, according to four sources cited by Reuters. The move could further worsen the situation in a fuel market already grappling with a global shortage of supplies, the agency reports.

Beijing restricted fuel exports in March after the outbreak of war in Iran disrupted oil supplies from the Middle East. In July, the world’s largest importer eased the restrictions and began managing supplies of diesel, gasoline and aviation fuel on a monthly basis.

A week-long holiday begins in China today. However, the country has not given the go-ahead for major refineries in the world’s largest refining hub to export fuel products to regions other than Hong Kong and Macau in October, sources told Reuters. The sources said it was unclear whether Beijing would allow refineries to resume exports after the holiday ends on 7 October. The decision could depend on domestic fuel stock levels and the volume of oil processing, they added.

Oil prices are rising this afternoon, partly in response to reports from China. At around 16:00 CEST, North Sea Brent crude was up 2.95 percent at around $100.90 per barrel. US light crude West Texas Intermediate (WTI) was up 1.15 percent, trading at around $91.50 per barrel.