China has tightened restrictions on exports of refined oil products as it moves to protect its economy from rising instability linked to the Middle East conflict, according to a Bloomberg News report. The decision comes as global energy markets remain volatile following the war involving the United States, Israel and Iran.
The world’s second-largest economy is also the largest importer of crude oil, with most of its refining capacity geared toward meeting domestic demand. China also exports refined fuels such as gasoline, diesel and jet fuel, which totaled about 58 million tonnes last year, based on official customs data.
Bloomberg reported that Chinese refiners have started cancelling previously agreed export shipments of refined fuels, citing people familiar with the matter. The report said the latest directive appears to be stronger than guidance issued last week, which merely advised companies to halt shipments and was widely seen as optional.
At a regular press briefing, Chinese foreign ministry spokesperson Guo Jiakun said he was not aware of the details of the reported measures.
Global oil markets have been unsettled since the conflict began, with prices briefly climbing above $100 a barrel after Iranian attacks across the Gulf region raised fears of supply disruptions. The tension has also overshadowed an emergency release of strategic oil reserves by the International Energy Agency. China is not a full member of the IEA and is therefore not required to participate in coordinated reserve releases.
Energy security concerns have intensified as the Strait of Hormuz — a crucial maritime route through which about one-fifth of global crude oil flows — has effectively been closed amid the conflict. More than half of China’s seaborne crude imports last year came from the Middle East, according to energy analytics firm Kpler.
Despite this exposure, analysts say China’s large strategic stockpiles could help cushion the impact of supply disruptions in the short term. Kpler estimates the country holds around 1.2 billion barrels of crude in onshore storage, equivalent to roughly 115 days of seaborne imports. Beijing previously released oil from its strategic reserves in 2021 through the National Food and Strategic Reserves Administration to ease rising factory-gate inflation.
So far, however, the agency has not announced any similar release in response to the current market turmoil. Guo Jiakun said earlier this week that China would take necessary steps to safeguard its energy security as the geopolitical crisis continues to disrupt global oil markets.
