China to Hit Highest Diesel Export Volume in August
China’s export of diesel in August will be the highest volume since 1999 when its local market cannot absorb the excess fuel from its refinery and when inventories are full. The said exportation of diesel coming from the world’s no. 2 oil consumer adds to the global glut that is happening and will reduce processing margins further as OPEC kingpin of Saudi Arabia stepped up their exports in the middle distillate.
Around 900,000 tons is expected to be shipped out of China and base don sources this will be the highest volume of diesel export since 1999. The increase also overtakes the current post 1999 peak of diesel in June at 669,831 tons. The fuel tanks in China are full to the brim since May and there is so much oil that it’s at maximum capacity. China diesel export rises as their domestic sales have been shrinking due to slower economic growth and rebound on oil prices.
Also the annual fishing ban in the South China Sea drove the higher shipments of diesel from China. the government doubled the extra quota volumes for diesel for the third quarter compared to the previous three months which raised the total exports quotas so far this year to 5.5 million tons. Although the diesel run will not last long, China doesn’t want to be dependent on exports. China is still prefers to be self sufficient than to be major oil exporter as it’s still dependent on crude imports.