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China Averts Diesel Supply Crisis With Exports Poised to Climb

  • Output rose to 13-month high in October as refiners ramped up
  • Overseas shipments to gain next month after sliding this month

China has averted a full-scale diesel crisis after refiners quickly ramped up production, with excess supply poised to flow into a regional market starved of the industrial fuel.

Top processors China National Petroleum Corp. and China Petroleum & Chemical Corp., better known as Sinopec, started boosting production in September under government coordination as demand surged following a broader energy crunch. While some fuel retailers were forced to ration diesel volumes and at least one refiner imported the fuel to meet rising consumption, the nation’s output rebounded in October to the highest level in 13 months.