China has tightened export restrictions on refined oil products, including gasoline, diesel, and jet fuel, following escalating conflict in the Middle East, Bloomberg News reported. The measure aims to secure domestic energy supplies as global oil markets react to the war, with prices surpassing $100 per barrel and the Strait of Hormuz effectively closed.
The latest instructions require Chinese refiners to cancel agreed export cargoes, marking an escalation from last week’s guidance, which was understood as non-mandatory. China, the world’s second-largest economy, is the top importer of crude oil, with its refining operations largely dedicated to the massive domestic market. Exports of refined products reached 58 million tonnes last year, according to official customs statistics.
Foreign Ministry spokesman Guo Jiakun stated he was not familiar with the specifics during a regular news conference. However, the ministry previously confirmed that China will take necessary steps to protect its energy security, emphasizing a cautious approach amid volatility.
The crisis has disrupted global energy flows, with the Strait of Hormuz—through which about one-fifth of world crude passes—now inaccessible. Over half of China’s seaborne crude imports originate from the Middle East, based on data from analytics firm Kpler, underscoring its reliance on the region.
China’s strategic petroleum reserves, estimated at 1.2 billion barrels of onshore crude, equal roughly 115 days of seaborne imports, Kpler notes. This stockpile, built over years, provides a buffer against near-term supply shocks. While Beijing authorized a reserve release in 2021 to address inflation, the National Food and Strategic Reserves Administration has not yet announced similar actions for the current turmoil.
As a non-full member of the International Energy Agency, China is not bound by the agency’s coordinated crude release, reinforcing its independent energy strategy. The curbs on refined fuel exports could tighten global supplies, potentially raising costs for other nations.
Analysts suggest China’s immediate focus is on safeguarding domestic stability, with reserves offering temporary relief. However, prolonged Middle East disruptions may strain these stockpiles and alter global refined product trade patterns, highlighting the interconnected risks in energy security.
