China set to extend fuel export ban with small exemptions, sources say

China is poised to extend its ban on refined fuel exports into April, five industry sources with knowledge of the matter said, though exemptions could be applied to small volumes bound for countries in the region that have requested help.

Discussions for shipment of limited volumes of diesel, jet fuel and gasoline exports to Southeast Asian countries for April were ongoing, three of the sources said. Two of the sources said permitted exports could total up to 150,000 metric tons, while the other said it could be 300,000 tons.

Spot export sales by refiners would remain disallowed, the sources said, declining to be named as they were not authorised to speak to media.

Countries that may receive Chinese fuel supplies include Bangladesh, Myanmar, Sri Lanka, the Maldives and Vietnam, the sources said. 

CHINESE STATE OIL FIRMS WOULD HANDLE SHIPMENTS

Direct shipments to the countries would be handled by Chinese state firms, three of the sources said.

China's National Development and Reform Commission did not immediately respond to a faxed request for comment.

Some countries, including the Philippines and Bangladesh, have asked China for fuel supply since the start of the Iran war, Reuters reported earlier. Beijing said it was willing to work with Southeast Asia to address energy shortages.

Beijing placed a ban on export sales of diesel, gasoline and jet fuel from March 12. Jet fuel exports for international flight refuelling and bunkering were not included in the ban, which was not publicly announced.

Some exports of diesel and jet fuel from bonded tanks in south China's Hainan province trickled out after March 12, with two sources familiar with the matter saying the volumes had cleared customs before the ban was implemented.

Tankers Stavanger Pearl, Auchentoshan and Qian Chi loaded with more than 600,000 barrels of diesel in total from Hainan after March 12. The first was destined for Mexico and the other two for the Philippines, ship-tracking data from Kpler and two trade sources showed.