China Expected to Cut Fuel Exports Amid Domestic Power Crisis
China will likely slash its fuel exports throughout October as the nation keeps more oil for domestic use amid a coal shortage-related power crisis, local industry consultant JLC predicted, Bloomberg reported Oct. 13. Oil product output on goods such as…
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diesel and gasoline are expected to drop due to tighter nationwide balances, which have raised retail prices and margins from domestic sales, JLC said. This trend will likely continue through the fourth quarter, with aviation fuel standing as the lone exception, the consultant said. Chinese diesel exports are expected to drop to about 310,000 tons -- their lowest level since March 2015, JLC said. This drop may be especially stark since countries throughout Asia are set to consume more diesel as economic recovery continues, added Yawen Lu, an oil market analyst at FGE.