China is loosening its grip on refined oil exports, raising the amount state refiners can ship abroad in July to 800,000 metric tons. That’s up from 600,000 tons permitted in June, a roughly 33% increase that signals Beijing is growing more comfortable with its domestic fuel supply situation.
The move marks a meaningful pivot from the restrictive posture China adopted earlier this year. Since March, the government had sharply curtailed refined product exports, driven by concerns that the ongoing conflict in Iran was disrupting crude oil imports and threatening fuel security at home.
The numbers tell a complicated story
May 2026 saw a 40% jump in refined fuel exports compared to the previous month. Those figures are still 69% below where they were a year ago.
China’s second-batch fuel export quotas for the year were set at 18 million metric tons, largely unchanged from the prior year’s allocation. So the annual ceiling hasn’t moved much. What’s changed is Beijing’s willingness to actually let refiners approach that ceiling rather than keeping them on a short leash.
