China's exports of refined oil products in July fell 12.9% year-on-year but rose 6.7% from the previous month, customs data showed on Tuesday, as the easing of export curbs allowed refiners under pressure to ship more fuel overseas.
The key fuel supplier to Asia curbed exports sharply in March to protect its domestic market from the oil shock caused by the closure of the Strait of Hormuz in the Iran war. Beijing eased those controls in July and again in August, when officials approved enough exports to exceed pre-war levels.
In July, the latest month for which data is available, refined oil exports, which include diesel, gasoline, aviation fuel and marine fuel, totaled 4.65 million metric tons, up from 4.36 million in June, when exports jumped 29% from May.
Diesel exports are roughly back to the level of last July after rising 88% month-on-month to 810,000 tons, or about 50% higher than the monthly average last year.
Rising exports are a boon for customers in a tight market. They are also a precondition for the normalization of China's oil imports, which remain well below pre-war levels.
By allowing refiners to export more product overseas, where prices are higher, the sector receives greater incentive to increase output and, in time, oil imports.
Exports of other fuels remain below pre-war levels, although rising. Gasoline exports stood at 420,000 tons in July, down 55.3% year-on-year but up 320% from June.
China's aviation fuel exports rose 42% from June to 1.32 million tons in July, but were down 33% from the same period last year.
The data also showed LNG imports rose 2.4% year-on-year to 5.5 million tons in July.
China's LNG imports in the first seven months dropped 4.6% from the same period last year.
