(June 30): China has lifted some restrictions on oil-product exports in the past week, rolling back measures introduced to safeguard domestic supplies shortly after the war began in the Middle East.
According to people familiar with the matter, Beijing has informed certain state refiners that they’re now allowed to export fuels such as gasoline and diesel to a wider range of countries than the handful of oil-starved neighbours already exempted.
The new policy will affect shipments loaded from July onward, said the people, who were briefed by authorities on the matter but asked not to be named because they’re not authorised to speak to media.
Neither China’s Ministry of Commerce nor the nation’s top refiner, China Petrochemical Corp, replied immediately to separate requests for comment.
While the move could pave the way for sales to more destinations, overall volumes will remain within quotas set by the government. China told its top refiners to suspend exports of diesel and gasoline to prioritise the nation’s fuel security in early March, just days after the US and Israel launched strikes on Iran.
Vessel traffic through the Strait of Hormuz has increased since Washington and Tehran signed an interim peace deal in mid-June, with more oil-laden ships exiting the Persian Gulf region and empty tankers arriving to pick up new cargoes.
See also: Oil extends decline as barrels flow through Strait of Hormuz
The lifting of restrictions by Beijing may bring more volumes to Asia, where several nations have faced fuel shortages, soaring costs, queues at the pumps and flight cancellations. Other regional suppliers such as South Korea are also starting to ramp up exports in what appears to be an attempt to front-run the market before flows from the Middle East return to normal.
Uploaded by Magessan Varatharaja
