China crude stocks fall as refinery intake climbs to 15-month low

China's diesel inventories at state-owned energy majors fell 2.4 percent in the week to August 12 to their lowest level in 15 months, according to data from Chinese commodity market research firm JLC International cited by Bloomberg. Gasoline inventories declined 2.9 percent to their lowest since 2022 in the same period.

Refinery intake accelerates as product stocks tighten#

The drawdown follows increased refinery crude intake as domestic fuel demand climbs seasonally. After Beijing imposed export restrictions in March during supply concerns related to the Iran conflict, gasoline stocks at state refiners reached their highest levels since 2025 in April. Diesel stocks at state majors hit their highest since 2024 in the same month. The export curbs took immediate effect on March 11, applying to gasoline, diesel and jet fuel cargoes that had not yet cleared customs as of that date.

Export restriction risk rises with inventory decline#

Energy Aspects analyst Jiana Sun told Bloomberg that tightening domestic supply raises the risk Beijing could limit monthly clean product exports to approximately 1.2 million tons in the fourth quarter. China relaxed its March export restrictions in April. June exports increased amid a Middle East supply shortfall as regional refineries sustained damage from drone and missile attacks. The easing of restrictions has continued, driving export growth, particularly in fuel oil, which reached a 2026 high in June.

March curbs followed Iran conflict supply concerns#

Beijing told energy companies in early March to suspend new fuel export contracts and attempt to cancel already arranged shipments as global fuel markets tightened during the U.S. and Israeli military action against Iran. The restrictions applied to the world's largest crude oil importer and a major fuel exporter. China's fuel exports have grown since the April relaxation of controls, with fuel oil shipments hitting their highest level of 2026 in June.