China suspends October fuel exports to protect domestic supply, sources tell Reuters

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Reuters reported on October 1, citing four people familiar with the matter, that state oil giant PetroChina cancelled several gasoline and jet fuel cargoes scheduled for October, while privately controlled Zhejiang Petrochemical Corp did not schedule any oil product shipments during China's week-long National Day holiday. Beijing has yet to authorize October exports outside Hong Kong and Macau; shipments could resume after the holiday ends on October 7, depending on domestic inventories and refinery output.

The pause reflects Beijing's push to restore commercial fuel stocks toward pre-war levels. Kpler estimates commercial diesel and gasoil inventories are around 20 million barrels below that threshold, with gasoline roughly 9 million barrels short. Beijing had restricted exports after the war with Iran disrupted Middle Eastern oil supplies in March, relaxed the controls in July, and has since managed exports month by month.

The timing is politically charged: it follows President Xi Jinping's recent visit to Washington, where President Donald Trump urged him to help stabilize global fuel supplies. U.S. Energy Secretary Chris Wright said on Wednesday that "we've lost diesel exports from China," and Reuters reported the Trump administration has told Germany and France to draw down emergency diesel inventories or face a potential U.S. diesel export ban. Russia separately extended its diesel export ban to October 31.