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China has imposed tighter restrictions on the export of refined oil products as it seeks to shield its economy from growing instability caused by the Middle East conflict, Bloomberg News reports. The move comes amid heightened volatility in global energy markets following the war involving the United States, Israel, and Iran.
As the world’s second-largest economy and largest crude oil importer, China focuses most of its refining capacity on its vast domestic market. It also exports refined fuels, including gasoline, diesel, and jet fuel, totaling 58 million tonnes last year, according to official customs data.
Bloomberg reported that Chinese refiners have begun canceling previously agreed shipments of refined fuels, citing sources familiar with the matter. This directive marks a stronger step than earlier guidance issued last week, which merely advised companies to suspend exports but was widely seen as optional. At a regular press briefing, Chinese foreign ministry spokesperson Guo Jiakun said he was unaware of the details of the reported measures.
Global oil prices briefly rose above $100 per barrel as Iranian attacks across the Gulf region heightened fears of supply disruptions, overshadowing an emergency release of strategic oil reserves by the International Energy Agency. China, not a full IEA member, is not obligated to participate in coordinated reserve releases.
Energy security concerns are particularly acute because the Strait of Hormuz, through which about one-fifth of global crude oil passes, 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 note that China’s strategic stockpiles—estimated at around 1.2 billion barrels of crude, or roughly 115 days of seaborne imports—could cushion short-term supply disruptions.
Beijing previously tapped its strategic reserves in 2021 to ease rising factory-gate inflation, but the National Food and Strategic Reserves Administration has not announced a similar release amid the current market turmoil. Guo Jiakun emphasized earlier this week that China would take necessary steps to safeguard its energy security as the geopolitical crisis continues to disrupt global oil markets.
