China’s Fuel Exports Reach 13-Month High in July Surge

China has reported a significant increase in its fuel exports, reaching a level not seen since June 2024. In July, the nation exported a total of 5.34 million tons of refined petroleum products, marking a 7.1% rise compared to the same month last year. This boost includes notable increases in shipments of gasoline, diesel, and jet fuel, which have all surged to multi-month highs.

According to customs data, July witnessed a remarkable climb in diesel exports, which soared by 53.2% year on year. Gasoline shipments also experienced a robust increase, rising by 18.6%. Additionally, jet fuel exports grew by 10.9%, reaching the highest level since March 2025. These figures reflect a continuing upward trend from June, although year-to-date exports for diesel and gasoline remain lower than those recorded in the first half of 2024.

Refinery Output Drives Export Growth

The increase in fuel exports can be attributed to higher refinery runs in China during June and July. The country’s oil refining throughput rose significantly, with refiners processing 14.85 million barrels per day (bpd) in July. This output represents a slight decrease of 1.95% from June, which had seen the strongest oil refining levels since September 2023.

The increase in throughput was largely due to improved fuel margins and the conclusion of spring maintenance at state-owned refineries, allowing for enhanced capacity utilization. In July, refinery utilization climbed to 71.84%, according to data from consultancy Oilchem. This increase in processing rates has prompted a corresponding rise in crude oil imports to meet the demand for refined products.

Despite the month-to-month decline in throughput, the July figures indicate a strong recovery in fuel exports compared to the previous year. The growth in July signifies a potential rebound for China’s refining sector, which has faced challenges earlier in 2024.

The outlook for the rest of the year remains cautiously optimistic, with analysts monitoring the dynamics of the global oil market and domestic demand trends. As the world’s top crude importer, China’s refining capacity and export volumes will continue to play a crucial role in shaping international oil supply dynamics.