News Desk
China has approved the export of 500,000 metric tonnes of refined oil products in May, resuming shipments to several countries including the Maldives after suspending exports due to the Middle East conflict, according to Reuters citing traders and sources with direct knowledge of the matter.
The approved volume is nearly double what was forecast for April but less than a third of China’s average monthly exports last year, when the country shipped around 1.6 million tonnes of petrol, diesel and jet fuel per month to markets outside Hong Kong, according to tracking firm Kepler.
Beijing sharply cut oil exports from March after the closure of the Strait of Hormuz, which followed the US-Israeli military conflict with Iran, raised concerns about restricted access to crude oil and refined products. Chinese authorities moved to protect domestic supply before resuming outbound sales.
The decision to increase exports in May came after pressure from Chinese state-owned oil companies seeking to capitalise on higher international prices. China’s refineries had been losing money on domestic sales despite rising crude costs. Exporters earned between 2,000 and 4,000 yuan per tonne on petrol and diesel exports last week.
The 500,000 tonnes has been allocated primarily to Sinopec, which received more than half the total quota. PetroChina was allocated 150,000 tonnes and CNOOC 40,000 tonnes. Diesel and jet fuel will account for at least 40 percent of total exports.
Countries confirmed to receive shipments in May include Australia, Bangladesh, Cambodia, Laos, Myanmar, New Zealand and the Maldives.
For the Maldives, the resumption is significant. Finance Minister Moosa Zameer and other senior officials have repeatedly assured the public in recent weeks that fuel supply will not be interrupted despite the regional disruption. The resumption of Chinese exports provides some of the supply backing those assurances.
