China Fuel Exports Remain Low Despite Eased Restrictions

China has eased restrictions on fuel exports imposed after the outbreak of conflict in the Middle East, but shipments so far in May remain significantly below pre-war levels. The Financial Times reported, citing data from Kpler, that gasoline, diesel and jet fuel exports are running at nearly half the volumes recorded before the Iran war.

The lower shipments come as other parts of Asia face reduced fuel availability following the closure of the Strait of Hormuz. China issues fuel export quotas on a regular basis for both state-owned and independent refiners. State-owned energy companies receive the bulk of these quotas.

At that time, officials instructed energy companies to suspend new export contracts and seek to cancel existing shipments as global fuel markets tightened. The policy was introduced amid a worsening supply crunch caused by the disruption in oil flows through the Strait of Hormuz. The current easing of restrictions has not yet produced a return to previous export volumes.

Oil prices have risen in recent weeks, with WTI crude at $100.4 per barrel and Brent crude at $104.9 per barrel. The IEA revised its 2026 forecast to show a wider oil deficit resulting from reduced Iranian production. Cuba has run out of diesel and fuel oil, leading to worsened blackouts, while Japan's refinery utilization has fallen to 73 percent as it draws on strategic stocks.