China has moved to curb exports of refined petroleum products as authorities seek to protect domestic energy supplies amid escalating instability in global oil markets linked to the conflict involving the United States, Israel and Iran, according to a report by Bloomberg News.
The report said several Chinese refiners have begun cancelling previously scheduled export shipments of fuels such as gasoline, diesel and jet fuel following new instructions from authorities. People familiar with the development told Bloomberg that the latest guidance is stricter than an earlier advisory issued last week that had merely suggested companies pause exports, a directive many in the industry had initially treated as optional.
China, the world’s second-largest economy and the largest importer of crude oil, operates one of the biggest refining systems globally. While most of its refining capacity serves its vast domestic market, the country still exports significant volumes of refined fuel. Official customs data show China shipped about 58 million tonnes of refined petroleum products abroad last year.
At a routine press briefing, Chinese Foreign Ministry spokesperson Guo Jiakun said he was not aware of the details of the reported restrictions when asked about the Bloomberg report.
Energy markets have remained volatile since the conflict intensified across the Middle East, pushing global oil prices briefly above $100 per barrel as fears of supply disruptions spread. The turmoil has overshadowed an emergency release of oil reserves coordinated by the International Energy Agency to calm markets.
China is not a full member of the agency and therefore is not obligated to participate in coordinated strategic reserve releases.
Concerns over supply security have also deepened because the Strait of Hormuz—a vital shipping route through which roughly one-fifth of the world’s crude oil supply moves—has effectively been closed amid the conflict. Data from energy analytics firm Kpler indicate that more than half of China’s seaborne crude imports last year originated from the Middle East.
Despite this heavy reliance on the region, analysts say China’s large strategic oil reserves could help cushion the immediate impact of supply disruptions. Kpler estimates the country holds about 1.2 billion barrels of crude in onshore storage, equivalent to roughly 115 days of seaborne imports.
Beijing previously tapped its reserves in 2021 through the National Food and Strategic Reserves Administration to ease rising factory-gate inflation, but no similar release has yet been announced in response to the current market turmoil.
Guo earlier said the Chinese government would take “necessary measures” to safeguard the country’s energy security as geopolitical tensions continue to disrupt global oil markets.
