China's September diesel exports more than triple amid Iran war

what happened

China's exports of refined oil products rose 39.4% year-on-year in September, customs data showed on Sunday. Diesel exports reached 1.85 million tons, up 262.3% from a year earlier and the highest since February 2023. The surge comes as a tight global market, shaped by the conflict in the Middle East and other conflicts that curb output in the region and in Russia, pushes buyers toward Chinese supply.

In mid-March China restricted exports of diesel, gasoline and jet fuel to protect domestic supplies, then eased those curbs in mid-July. Total refined product exports rose 19% month on month in September to 7.16 million tons, but fell 3.7% year-on-year to 41.4 million tons in the first three quarters. Gasoline exports dropped 4.1%, while jet fuel rose 16.7%. LNG imports fell 1.4% year-on-year to 5.61 million tons.

why it matters

Strong Chinese diesel exports tighten the middle distillate balance in Asia and support diesel and fuel oil prices. For the oil market, it signals that demand for refined products stays firm even when crude prices ease.

market impact

Diesel and jet fuel: strong Chinese exports support prices in Asia; Brent: firm demand for refined products

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