Asia: China Adds to Product Tightness, Keeps Exports Down

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China's Current Account Reversal

China exported a low 3.27 million tons of refined products in May, down 43% from a year ago, as state refiners started to run out of transportation fuels export quotas. This is especially felt in the globally tight middle distillate market. In the January-May 2021 period, China exported 10.6 million tons of gasoil, or 526,000 barrels per day. Over the same five months this year, that volume has plunged almost 85% to 85,000 b/d. Regional buyers now scout the global market to replace the shortfall, just when Europe is doing the same and bidding up prices to make up for falling product supply from Russia.

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