China's August refined fuel exports exceed pre-Iran war levels, jet fuel exports hit record high

China's refined fuel exports in August surged 12.7% year-on-year, marking a notable rebound amid the ongoing Iran war, as customs data revealed on Friday. The nation, a significant exporter of refined oil products in Asia, had previously imposed export restrictions on refined products such as diesel, gasoline, and jet fuel in mid-March to ensure domestic supplies amid potential supply disruptions from the Middle East.

However, Beijing started easing these restrictions in mid-July and is projected to continue relaxing export controls in September, positioning the country to benefit from higher overseas margins.

In August, refined oil exports, encompassing diesel, gasoline, jet fuel, and marine fuel, reached a total of 6.01 million metric tons. While the country exported 34.24 million tons of refined oil products from January to August, a 9.6% decrease compared to the same period last year. Jet fuel exports witnessed an impressive 41.4% year-on-year increase, reaching a record high of 2.55 million tons in August, up from 11.76 million tons in the first eight months of the year, which marked a 14.4% year-on-year decline.

Diesel exports surged 42.1% year-on-year to 1.33 million tons in August, the highest level since March 2024, with a 5.9% increase over the first eight months of the year. Gasoline exports, however, fell 17.5% year-on-year to 700,000 tons in August, the highest since October 2023, with a 57.4% decrease from the corresponding period last year.

Additionally, China's liquefied natural gas (LNG) imports declined 17.8% year-on-year to 5.16 million tons in August, falling by 6.8% compared to the first eight months of the previous year.