China Cuts Diesel Exports, Domestic Inventories Fall Chinese refiners sold only about 500,000 tons of diesel for delivery through the end of November, after a surge in exports since July pushed domestic inventories to multi-year lows, according to traders and calculations based on trade data. China began easing export controls in July, when diesel exports surged to multi-year highs of 1.33 million tonnes in August and 1.8 million tonnes in September, squeezing domestic inventories. Despite strong export margins that reached 800 yuan ($120.30) a tonne last week, diesel export cuts became necessary as China's domestic inventories fell amid steady domestic demand and lower-than-expected refinery output, Reuters writes. Wholesale diesel prices at the Shandong province refining center surged to more than 10,000 yuan per ton, hitting the highest level since 2018, according to Oilchem. Over the past week, Chinese refiners have limited diesel sales to end users and large domestic traders. In some cases, refiners sold each ton of diesel along with three tons of gasoline to maximize their profits when gasoline demand fell. Truck drivers in several districts reported on social media that some gas stations are phasing out diesel sales.

China Cuts Diesel Exports, Domestic Inventories Fall Chinese refiners sold only about 500,000 tons of diesel for delivery through the end of November, after a surge in exports since July pushed domestic inventories to multi-year lows, according to traders and calculations based on trade data. China began easing export controls in July, when diesel exports surged to multi-year highs of 1.33 million tonnes in August and 1.8 million tonnes in September, squeezing domestic inventories. Despite strong export margins that reached 800 yuan ($120.30) a tonne last week, diesel export cuts became necessary as China's domestic inventories fell amid steady domestic demand and lower-than-expected refinery output, Reuters writes. Wholesale diesel prices at the Shandong province refining center surged to more than 10,000 yuan per ton, hitting the highest level since 2018, according to Oilchem. Over the past week, Chinese refiners have limited diesel sales to end users and large domestic traders. In some cases, refiners sold each ton of diesel along with three tons of gasoline to maximize their profits when gasoline demand fell. Truck drivers in several districts reported on social media that some gas stations are phasing out diesel sales.