China Fuel Inventories Hit Decade Lows

China gasoline and diesel inventories fall to multiyear lows as surging exports and recovery drain stocks. Analysts expect Beijing to tighten export controls in October to protect domestic supply.

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Oil storage tanks and facilities of a Sinopec plant in Shanghai, China, March 26, 2026. REUTERS/Go Nakamura/File Photo

China's commercial fuel inventories dropped to their lowest levels in more than a decade in September, driven by surging exports and recovering domestic demand. The depletion threatens to trigger renewed export controls as state refiners prioritize national energy security. Tightening reserves could reshape regional product flows, placing upward pressure on Asian refining margins.

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