China has ordered Sinopec and PetroChina to halt diesel and gasoline exports.

China has just ordered Sinopec and PetroChina to stop exporting diesel and gasoline. Not slow down—stop outright. Beijing looked at the Strait of Hormuz, then at its own fuel inventories, and made a decision: nothing leaves. Until further notice, every barrel of oil refined in China must remain within China’s borders. When the world’s largest manufacturing hub—the ‘world factory’ powering global supply chains from semiconductors to solar panels to the clothes on your back—begins rationing fuel, the economic shockwaves cannot be confined to the Gulf. Chinese refiners estimate they have only about 10 days of buffer stock; beyond that, domestic operations will face real constraints. If the Strait of Hormuz remains closed thereafter, China will encounter substantive supply problems within two months.

China is stockpiling oil heavily amid low oil prices, while refining companies suspend diesel and gasoline exports.

Data released by China’s General Administration of Customs show that in December 2025, China’s crude oil imports rose 17% year-on-year to 55.97 million tonnes—the highest monthly level on record. For the full year 2025, crude oil imports totaled 577.73 million tonnes, up 4.4% year-on-year, also a new record high. Consultancy Kpler attributes the growth in crude imports to stronger crude processing volumes and robust restocking demand, forecasting China’s 2025 crude processing volume at 15.38 million barrels per day (bpd), up 0.7% year-on-year. 1. Two million barrels per day in surplus Reuters estimates China’s crude oil surplus in 2025 at 1.13 million bpd—particularly pronounced toward year-end as import volumes surged sharply. December imports hit a record 13.18 million bpd; imports for the first two months of the year averaged approximately 12.47 million bpd. Assuming domestic production remains steady at roughly 4.2 million bpd and refinery throughput holds near 14.7 million bpd, the surplus during January–February could reach nearly 2 million bpd. Analysts note that last year, OPEC+ refrained from aggressive output cuts, Americas-based oil supply expanded significantly, and sanctioned Iranian, Russian, and Venezuelan crude continued flowing into global markets—yet oil prices did not collapse. One key reason was China’s aggressive buying. With benchmark international crude prices stabilizing around USD 60 per barrel, China evidently judged the price cheap enough to purchase far more crude than current demand warrants—and store it in either commercial or strategic reserves. 2. Even more oil is already en route China can also choose to purchase Russian and Iranian crude stored aboard floating storage vessels—much of which is located away from the Strait of Hormuz but relatively close to Chinese ports across Asia. Global commodities data platform Kpler estimates that, as of February 27, 2026—the day before the U.S. and Israel launched attacks on Iran—the total volume of Iranian crude oil afloat globally stood at approximately 191 million barrels. Of this, about 127 million barrels were located in eastern waters—including the Malacca Strait, Singapore Strait, South China Sea, East China Sea, and Yellow Sea—while another ~39 million barrels were situated in the Arabian Sea and Gulf of Oman, likely en route eastward. Analysts at Norwegian energy research and business consultancy Rystad Energy stated, “China very wisely built up massive crude oil reserves last year, giving it a buffer to weather the current crisis.” China’s vast crude reserves can absorb price spikes, meaning inflation triggered elsewhere by surging energy costs will not spill over into China. Moreover, should Middle Eastern crude supplies remain disrupted long-term, Chinese refiners may even reap unexpected windfall profits by ramping up finished-product exports.

Chinese refiners suspend Oct fuel exports, PetroChina cancels cargoes, sources say

Sep 30, 2026

Chinese refiners suspended oil product exports beyond Hong Kong and Macau until further notice following the Golden Week holiday. PetroChina cancelled most planned gasoline and jet fuel shipments for October to safeguard domestic supplies.

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Chinese refiners suspend Oct fuel exports, PetroChina cancels cargoes, sources say

Chinese refiners suspend Oct fuel exports, PetroChina cancels cargoes, sources say

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