China’s diesel exports fell in September to the lowest level since June 2023 on weak margins and limited export quotas, customs data showed.

Diesel exports last month totalled 350,000 metric tons (2.61 million barrels), down 70.9% from a year earlier, according to the General Administration of Customs. That was also sharply down from 880,000 tons in August.

The weakness was due to “tight clean fuel export quotas, plus refiners prioritised jet fuel exports over diesel, and weak export margins,” said Emma Li, senior China oil analyst for Vortexa.

Gasoline exports totalled 730,000 metric tons last month, down 33% on the year to the lowest level since April.

Jet fuel exports rose 11.8% to 1.62 million tons.

Margins for jet fuel exports continue to be the most lucrative, a China-based trade source said.

China’s total refined fuel exports in September – including gasoline, diesel, jet fuel and marine fuel – dropped 4.5% year-on-year to 5.19 million tons.

October loadings for diesel and gasoline are currently around 190,000 tons and 445,000 tons respectively, LSEG shiptracking data showed, while consultancies and trade sources expect jet fuel exports for October to rise to 1.7-1.8 million tons.

The data on Friday also showed China imported 6.84 million tons of liquefied natural gas (LNG) in May, up 21.7% from the previous year. From January to September, LNG imports rose 11.9%.
Source: Reuters (Reporting by Colleen Howe in Beijing and Trixie Yap in Singapore; Editing by Susan Fenton)