Chinese refiners suspend October fuel exports, report says: Which other countries plan cuts amid Iran-Ukraine war

Chinese refiners have reportedly suspended exports of oil products to areas outside Hong Kong and Macau until further notice from Beijing. Sources told Reuters that state oil company PetroChina on Wednesday canceled several of its gasoline and jet fuel deliveries scheduled for October.

Meanwhile, another major refiner, privately-controlled Zhejiang Petrochemical Corp (ZPC), missed scheduled deliveries of oil products during the holiday week, a fourth source told Reuters.

Read also | Dividend income in jeopardy? 8 stocks with inconsistent dividend payouts

PetroChina, ZPC and National Development and Reform Commission have yet to comment on the report. The move comes as China struggles to secure domestic supplies amid a war in West Asia.

According to the report, the suspension of exports of Chinese products will further constrain global markets, which are struggling with the loss of supplies from the Middle East and Russia, and could push prices in some countries to new highs.

It is unclear whether Beijing will restore refinery export permits after the holiday ends on Oct. 7, the sources said, adding that it may depend on domestic fuel stocks and refinery output.

Which other countries have stopped or are considering stopping energy exports?

1. Russia

Russia has extended a ban on diesel exports for fuel producers until October 31, the government said on Wednesday, according to the Moscow Times.

“The decision was taken to maintain stability in the domestic fuel market, especially in view of the increased demand for motor fuels during the harvest season,” the report quoted a government press statement as saying.

Read also | Has Iran lost control of Gulf oil exports?

Russia has repeatedly imposed restrictions on gasoline and diesel exports to stem rising fuel prices and address shortages triggered by Ukrainian drone attacks on oil refineries.

Ukraine’s military claimed last week to have disabled more than 45% of Russia’s refining capacity.

2. Saudi Arabia

In early September, oil company Saudi Aramco told at least two European refining customers that they would receive no oil next month following an attack on a key Saudi Arabian pipeline to the Red Sea.

Saudi Arabia has informed European customers that some oil supplies will be canceled after drone strikes forced the closure of its east-west pipeline, damaged three gas stations and disrupted crude loading at the Red Sea port of Yanbu.

Later on September 29, Reuters cited sources as saying that Saudi Arabia had resumed loading oil tankers from its Red Sea port of Yanbu after resuming operations on the East-West pipeline.

Read also | Oil flows from the Middle East have reached 98% of pre-war levels, JPMorgan reports

State oil giant Saudi Aramco informed customers this week of its October loading schedule from Yanbu, an Asian refining source said. The refiner loaded a cargo from Yanbu late last week.

Satellite images from the European Space Agency also showed resumption of loading.

“ESA satellite imagery taken over the Red Sea on September 27 shows Saudi Arabia loading nearly 10 million barrels of oil at Yanbu and Al Muajjiz,” vessel tracking company TankerTrackers.com wrote in a post on X on Tuesday.

Drone attacks, blamed by Saudi Arabia on Iraqi militias, forced the kingdom to shut down the pipeline on September 11, halting oil exports from Yanbu. The pipeline was restored last Tuesday.

3. United States of America

US President Donald Trump said on Wednesday (September 30) that he is in talks “every day” about banning diesel exports as the White House seeks to curb soaring energy prices.

Trump said from the Oval Office that the export ban would “have a negative impact on gasoline prices” but could lower the cost of diesel.

He said the main cause of rising diesel prices is Russia’s war in Ukraine, with strikes from both sides affecting energy production and exports. He added: “We think we are in a very good place.”

According to Reuters, the Trump administration has also considered a blanket ban on diesel exports, voluntary export limits by refiners and allowing more tax-free sales of diesel.

The Trump administration and Republican candidates have been under pressure to lower fuel costs as November’s midterm elections loom and Trump’s economic approval rating remains under pressure.

Energy Secretary Chris Wright said the outages were more extensive. “We lost some diesel exports from the Middle East, although we are restoring them, and we lost diesel exports from China,” Reuters quoted him as saying. “So that’s a lot of disruption.

He said the administration expects an announcement from Europe soon about new diesel supplies. The White House called on the European Union to release emergency diesel stocks to help lower prices, Reuters reported.