China halts fuel exports amid Middle East supply tensions

China has asked its major refineries to temporarily suspend fuel exports and stop signing new contracts as the conflict in the Middle East disrupts oil supplies and increases pressure on the Asian market, according to media reports.

The measure does not affect jet fuel supplies for international flights, bonded storage operations, or deliveries to Hong Kong and Macao, several media outlets reported, citing industry and trade sources.

The decision mainly targets commercial exports of products such as gasoline, diesel and jet fuel. These exports are normally managed through a quota system designed to maintain a balance between supply and demand in the Chinese market.

Refining margins in the region have surged. Diesel margins have reached 49 dollars per barrel, while jet fuel margins have exceeded 55 dollars per barrel, the highest level in three years, according to data from the London Stock Exchange Group.

Since most March cargoes have already been scheduled, the impact of the export reduction is expected to become noticeable starting in April.

At least two Chinese refineries, Zhejiang Petrochemical and a Sinopec unit in Fujian, have already begun limiting their production, while other facilities may follow as disruptions to crude oil flows from the Middle East continue to push energy prices higher.

In 2025, the Middle East accounted for about 57 percent of China’s direct crude oil imports. This dependence exposes the country to risks linked to the closure of strategic routes, particularly the Strait of Hormuz, which is currently closed to commercial navigation.

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