China has instructed its largest oil refiners to halt exports of diesel and gasoline as a widening conflict in the Middle East disrupts crude supply and raises concerns over energy security, people familiar with the matter said on Thursday according to Reuters.
Officials from the National Development and Reform Commission, the country’s top economic planner, met refinery executives and verbally called for a temporary suspension of refined fuel shipments, including a halt to new export contracts and efforts to cancel previously agreed deals, according to sources. Exceptions to the directive include jet fuel for international flights and bonded bunker supplies to Hong Kong and Macau.
The move comes as crude oil shipments moving through the Strait of Hormuz, a crucial corridor for roughly one‑fifth of the world’s oil supplies, have been severely disrupted by the conflict, leaving Asian refiners struggling to replace Middle Eastern crude stocks and prompting cuts in output.
China, the world’s largest crude importer, depends on Middle Eastern oil for more than half of its seaborne imports. Analysts say the export suspension could tighten fuel supplies across Asia and push refining margins higher, with diesel and jet fuel prices already at multi‑year peaks amid the supply squeeze.
Despite the directive, March shipments of gasoline, diesel and jet fuel are expected to proceed under previously agreed quotas, with the new restriction likely to take effect from April.
Energy markets were already volatile on Thursday, with oil futures jumping over 3% as traders weighed the implications of the export halt and broader supply risks tied to the Middle East crisis.
