(March 12): Chinese oil refiners have begun cancelling agreed refined fuel export cargoes, including gasoline and diesel, according to people familiar with the matter, as Beijing further tightens curbs to cope with the impact of war in the Middle East.
The country’s largest processors were told last week to stop signing new export contracts and to negotiate the cancellation of cargoes that had already been agreed. The latest directive is a step up from the earlier guidance, which had been understood as non-mandatory, and as allowing some March-loading shipments to proceed.
The refiners have now been instructed to suspend all exports of so-called “clean” oil products that have yet to complete customs procedures, the people said, asking not to be identified as the discussions are not public.
Shipments that have not yet cleared customs as of Wednesday are no longer permitted to leave, they added.
China’s vast refining industry largely serves its domestic market, but the country is also a significant fuel exporter to Asia and beyond. The latest move comes as a widening conflict in the Persian Gulf upends oil and gas markets and raises energy-security concerns for the world’s second-largest economy.
The National Development and Reform Commission, China’s top economic planner, did not immediately respond to a request for comments.
See also: Brent oil soars back above US$100 as impact of Iran war deepens
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