China’s diesel exports surged more than tenfold at the start of the year — and gasoline shipments also climbed — as domestic demand eased during the Lunar New Year holiday and refiners used their export quotas.
(Bloomberg) — China’s diesel exports surged more than tenfold at the start of the year — and gasoline shipments also climbed — as domestic demand eased during the Lunar New Year holiday and refiners used their export quotas.
The nation shipped a combined 4.54 million tons of diesel during January and February, compared with 420,000 tons a year earlier, according to government data released over the weekend. That’s equivalent to about 574,000 barrels a day. Gasoline exports were 20% higher at 2.27 million tons.
China’s overseas shipments of the transport fuels have been robust since the final quarter of 2022 after Beijing issued a bumper export quota in an attempt to revive the nation’s economy as Covid restrictions hit demand. The country dismantled the restrictive measures late last year.
Diesel exports are expected to slump by 80% in March from a month earlier as domestic demand rebounds and some refiners conduct maintenance, according to OilChem. The decline will lead to a tightening of Asian supply.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.