China tightens refined fuel export curbs to shield its economy from Middle East war disruptions, as global oil prices surge past $100 a barrel.
BEIJING: China has tightened export curbs on refined oil products as Beijing seeks to shield its economy from the war in the Middle East, according to a Bloomberg News report.
The world’s second-largest economy, which is the top global importer of crude oil, also exported 58 million tonnes of refined products like gasoline, diesel and jet fuel last year.
Chinese oil refiners have now begun cancelling agreed refined fuel export cargoes due to the conflict, the report said, citing unidentified people familiar with the matter.
The latest instructions represent a step up from last week’s guidance to suspend shipments, which had previously been understood as non-mandatory.
When asked about the report at a regular news conference, foreign ministry spokesman Guo Jiakun said he was not familiar with the specific situation.
Global energy markets have been shocked since the start of the US-Israel war on Iran, with oil soaring above $100 a barrel as Tehran’s attacks on Gulf states overshadowed a record release of strategic crude by the International Energy Agency.
China is not a full member of the IEA and is therefore not obligated to participate in such coordinated releases.
The IEA’s announcement did not allay concerns over the choking of energy supplies from the Middle East, where the Strait of Hormuz is effectively closed.
More than half of China’s total seaborne crude imports last year came from the Middle East, according to analytics firm Kpler.
Analysts say years of strategic stockpiling will allow China to withstand supply disruptions, at least in the near term.
The country holds about 1.2 billion barrels in onshore crude inventories, equivalent to about 115 days of its seaborne imports.
Beijing authorised a release from its massive oil reserves in 2021 in response to spiking factory gate inflation, but the responsible administration has not issued similar measures for the current market turmoil.
Foreign ministry spokesman Guo said this week that China will do what is necessary to protect its energy security.
