China Boosts Fuel Exports as Domestic Stockpiles Swell

China's refined oil exports increased by 6.7% in July compared to June, although annual exports fell by 12.9%, according to Chinese customs data reported by Reuters. Chinese refiners shipped 4.65 million tons of refined products, including gasoline, diesel, jet fuel, and bunker fuel. Diesel exports surged by 88% to 810,000 tons, bringing them in line with July 2025 levels and 50% above the yearly average.

Gasoline exports dropped by 55.3% compared to the same month last year but increased by 320% from June as China eased fuel export restrictions after imposing them in March. Jet fuel exports declined by 33% on an annual basis but rose by 42% month-over-month. In early March, Beijing imposed a ban on all fuel exports, except for some shipments to Southeast Asian countries, due to the Middle East conflict and a supply crunch.

However, the government began to relax the curbs later in March, allowing 2.7 million tons of refined products to be exported until the end of August. The easing was prompted by abundant domestic stocks, which helped prevent a sharper oil price increase amid the Iran war. Analysts believe that these abundant domestic stocks were crucial in averting a more significant surge in oil prices resulting from the conflict.