China Restricts Fuel Exports Amid Global Energy Crisis

The Government of China has resumed restrictions on the export of refined fuel products, including diesel, jet fuel, and gasoline, to protect dwindling domestic inventories. The move follows a directive from the National Development and Reform Commission to prioritize domestic supply during the autumn harvest and amid rising crude prices. State-owned oil giants, including Sinopec and PetroChina, have slowed exports to global markets, though shipments continue to close allies like Cambodia.

These restrictions began with the cancellation of several oil-product cargoes scheduled for October, which immediately widened the prompt spread for gasoline and diesel in Asia. In Singapore, diesel prices spiked 5 percent before stabilizing as European nations considered releasing strategic reserves.

China's policy shift coincides with a broader global energy crisis. Russia renewed diesel export bans following drone attacks on its refineries, and an Indian refinery halted exports after a fire. In the United States, President Donald Trump threatened to restrict diesel exports to lower costs for domestic truckers. The shortage in China is further exacerbated by a U.S. naval embargo in the Persian Gulf, which has blocked the flow of discounted Iranian crude to China's private refineries.