China’s gasoline and diesel exports surged on weak local demand

China’s gasoline and diesel exports surged in the first two months of the year as domestic fuel demand weakened during the Lunar New Year holidays.

Gasoline exports jumped 63% in January from a year earlier, while shipments in February, which was a leap year, rose around 6%. Diesel exports slipped about 7% in January and climbed 6% in February.

Fuel shipments jumped due to weaker domestic demand leading up to the Lunar New Year when factories and plants shut for a seven-day national holiday, and because export margins improved compared to late last year, according to Yuntao Liu, an analyst T London-based Energy Aspects.

Exports are likely to stay elevated in March on improving global demand. China’s state-owned energy giants PetroChina Co., China Petroleum & Chemical Corp., Cnooc and Sinochem Group are planning to export a combined 3.5 million tons of fuel this month, consultant SCI99 said in February.

• China exported up to 510,000 barrels a day of gasoline in January, according to Bloomberg calculations based on data from General Administration of Customs released Thursday
  • That’s the highest since October last year
  • February exports were at 492,000 barrels a day
• Diesel exports were at 414,000 barrels a day in January, and 456,000 barrels a day in February