China May Cut Fuel Exports Amid Low Stocks

China’s gasoline stocks at state-owned energy companies dropped 2.9% last week, reaching a low since 2022.

China’s diesel and gasoline inventories are at their lowest levels in years, prompting speculation that the country may impose export curbs. Gasoline stocks at state-owned energy companies dropped 2.9% last week, reaching their lowest point since 2022, according to JLC International.

Diesel inventories also declined by 2.4% last week, marking a 15-month low. This has led Energy Aspects analyst Jiana Sun to suggest that Beijing could restrict monthly clean product exports to around 1.2 million tons in the fourth quarter.

China has previously implemented export curbs during global fuel market uncertainty. In March, they suspended new fuel export contracts and attempted to cancel existing shipments due to concerns over fuel supply security during the U.S.-Israeli conflict with Iran.

These restrictions caused domestic fuel stocks to surge, with gasoline and diesel inventories reaching multi-year highs. China relaxed these measures in June, leading to increased exports, particularly fuel oil, which hit a record high for 2026.

The 1.2 million tons export limit proposed by Jiana Sun could become a critical threshold, shaping the global diesel market’s trajectory in the near term.