China Boosts Fuel Exports as Domestic Stockpiles Swell

In July, China increased its fuel exports by 6.7% compared to June, although overall exports declined by 12.9% on an annual basis, according to Reuters, citing Chinese customs data. Refiners shipped out 4.65 million tons of refined products, including gasoline, diesel, jet fuel, and bunkering fuel. Diesel shipments saw an 88% increase, reaching 810,000 tons, and brought them in line with July 2025 export levels and 50% higher than the monthly average this year.

Gasoline exports, however, were 55.3% lower than a year ago but up 320% from June, as the Chinese government eased fuel export restrictions following the February 28 strikes on Iran that initiated the war. Jet fuel exports dropped 33% annually but rose 42% monthly. In March, after the Middle East conflict began and the Strait of Hormuz closed, China banned all fuel exports, except for some shipments to Southeast Asian countries.

Restrictions were eased later in the month, allowing the export of 2.7 million tons of refined products until the end of August. The easing came as domestic stockpiles were plentiful, helping avoid a larger oil price surge due to the Iran war. China's renewable energy sector, meanwhile, faces a record number of clean power curtailments, and Libya is experiencing a power crisis after its grid failed again. Chevron recently discovered significant oil and gas reserves offshore Angola.