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China Gasoline Exports Risk Derailing Motor Fuel’s Recovery

  • FGE sees fuel shipments from China surging through July-August
  • Margins have recovered since April with rebounding demand
Semi-trailers In Shanghai As China Looks at How it Could Expedite U.S. Farm Goods Imports
Photographer: Qilai Shen/Bloomberg
Updated on

A surge in Chinese gasoline exports is threatening to derail a nascent recovery in profits for Asian refiners making the motor fuel, who have endured months of virus-driven demand destruction.

Chinese refiners are boosting their overseas gasoline shipments while domestic inventories swell, just as margins from processing Brent crude into the fuel turn profitable again. Consumption has rebounded after the easing of lockdown restrictions in key Asian markets such as China, India, and Indonesia, drawing on a hoard of floating storage around Singapore.