China to Resume Fuel Exports After Brief Suspension

China is set to resume refined fuel exports in October following a brief suspension during its week-long National Day holiday, a move expected to provide some relief to tight global fuel markets.

Reuters reported on Friday, October 9, 2026, that four traders familiar with the matter confirmed the planned resumption of exports, which could help ease supply shortages affecting diesel, gasoline and jet fuel.

China suspended fuel exports at the beginning of October after failing to approve shipments to destinations outside Hong Kong and Macau before the holiday began on October 1.

The country began restricting fuel exports in March to protect domestic supplies after the ongoing US-Israeli war against Iran disrupted crude oil flows and refinery operations across the Middle East.

Although Beijing relaxed some restrictions between July and September, its export controls forced Asian buyers to seek alternative supplies, contributing to tighter fuel markets.

According to industry sources, China approved approximately 3.7 million metric tonnes of combined gasoline, diesel and jet fuel exports for October. This is below the slightly more than four million tonnes expected to be exported in September.

Analysts, however, believe the resumption will have only a limited impact on global fuel supplies because markets remain tight and disruptions to Middle Eastern supplies continue.

Stuti Jhunjhunwala, an oil market analyst at Energy Aspects in Kolkata, India, said the impact would be limited while supply disruptions persist.

Similarly, June Goh, a senior analyst at Sparta Commodities, said China's decision to resume exports was expected, but the approved volumes were lower than anticipated.

The ongoing conflicts in the Middle East and between Russia and Ukraine have disrupted global refined fuel production and contributed to rising prices, particularly for diesel.

In response to the supply challenges, the International Energy Agency this week agreed to accelerate the release of oil reserves and prioritise diesel supplies under a plan introduced in March.

China, the world's largest oil importer and home to the world's biggest refining industry, remains an important supplier capable of influencing fuel availability across Asian markets.

However, its refined oil exports have declined this year. Between January and August 2026, China exported 34.24 million tonnes of refined petroleum products, representing a 9.6 per cent decrease compared with the same period last year.

Despite the planned resumption, analysts expect global fuel markets to remain under pressure as geopolitical conflicts continue to disrupt production and supply chains.

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