From May, China will resume exporting gasoline, diesel, and jet fuel, the aircraft fuel whose shortage is worrying airports in Europe and – especially – Asia.
CHINA’S WEIGHT IN THE FUEL MARKET
According to sources from the Financial Times, Chinese authorities have relaxed the export ban introduced in March in response to the energy crisis created by the war between the United States and Iran: Beijing is exposed to tensions in the Persian Gulf because 40 percent of its oil imports pass through the Strait of Hormuz and about 30 percent of its liquefied gas imports come from Qatar and the United Arab Emirates. So far, it has managed to mitigate this vulnerability thanks to the large crude oil reserves it holds.
China is the world’s largest crude oil importer, but it is also a major exporter of petroleum derivatives, such as diesel and jet fuel, which it ships mainly to the Asia-Pacific region: Vietnam, Australia, the Philippines, Bangladesh, and Japan are among the countries that receive the largest quantities.
Before the war with Iran began, Beijing exported nearly 800,000 barrels per day of fuels. In April, it shipped some loads to Vietnam, Malaysia, and Singapore.
A GEOPOLITICAL MOVE?
According to a Financial Times source, China decided to reactivate exports to provide relief to Asian countries, whose stocks of jet fuel, in particular, but also diesel and gasoline, are falling to worrying levels. This would therefore be a geopolitical move aimed at gaining influence in the region through trade.
Gianclaudio Torlizzi, analyst at T-Commodity, wrote on X that “Beijing offers its availability of raw materials to expand its sphere of influence. Chinese refineries in particular will resume exports of jet fuel, diesel, and gasoline to alleviate supply bottlenecks caused by the Hormuz blockade. Objective: to extend control over Asia.”
AND EUROPE?
Despite increases in jet fuel prices and the risk of flight cancellations reported by airlines such as Lufthansa and KLM, European airports are not yet experiencing a severe fuel shortage: at least not as severe as in some Southeast Asian countries, which have had to proceed with rationing.
The European Commission has announced that in May it will introduce a mapping of refining capacity at the Union level and will adopt measures to ensure that this capacity is fully utilized. However, significantly increasing jet fuel production may not be possible, since refineries must dedicate themselves to other crude derivatives and process reorganization is not always technically feasible.
