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China Retreat From Diesel Market Has Consumers Seeking Suppliers

  • India ramping up fuel flows to Europe and other Asian nations
  • Deficit expected to expand in fourth quarter before easing
VW Chief Winterkorn Steps Down After Diesel Emissions Scandal

Photographer: Daniel Acker/Bloomberg

Diesel consumers are turning toward India and South Korea to alleviate a tight market after China cut exports to avert crippling shortages.

China’s retreat from the export market has coincided with a demand rebound from the pandemic and shrinking diesel stockpiles worldwide. An energy crunch due to coal and natural gas shortages has added further pressure, driving up consumption of the industrial fuel. That’s left India and South Korea with the task of helping plug the shortfall, said refinery officials and analysts.