China’s Fuel Oil Exports Hit 2026 High as Shipping Demand Rebounds

According to official customs data, China exported a record 577,000 barrels daily of fuel oil last month, marking an 18% increase from June 2025. This surge in fuel oil exports was largely driven by a rebound in shipping demand, particularly in the second half of the month, as lower prices made fuel oil more attractive to consumers.

The demand increase was particularly marked in the second half of the month, with fuel oil exports benefiting from lower prices. China exports fuel oil mostly used for ships, and the demand increase was a welcome relief for the industry. The demand for fuel oil has been a crucial factor in the country’s energy sector, and the recent surge in exports is a positive sign for the industry.

However, the overall refined products exports declined in June, with exports of gasoline, diesel fuel, and jet fuel remaining under government restrictions. The total refined product number stood at 4.36 million tons, representing an 18.3% decline on the year. The decline in refined products exports was a result of the government’s efforts to conserve fuel and reduce the country’s reliance on imported oil.

Despite the decline in refined products exports, the total for fuel oil exports from China over the first half of 2026 rose by 7.7% on an annual basis, to a total of 10.87 million metric tons. This increase in fuel oil exports is a significant development for the country’s energy sector and highlights the importance of fuel oil in meeting the country’s energy needs.

China’s imports of fuel oil also ticked higher in June, recovering from a record low in May. The June total in fuel oil imports was 76% higher than the May total, although it was 30% lower than the total for June 2025. Imports of fuel oil over the first six months of the year were 3.6% lower than a year earlier, at 9.39 million tons.

In early March, the Chinese government moved to ban all fuel exports amid a worsening supply crunch, with the exception of some volumes shipping out to certain countries in Southeast Asia. The ban was put in place to conserve fuel and reduce the country’s reliance on imported oil. However, in April, Beijing began to ease the restrictions as domestic gasoline, diesel fuel, and jet fuel stocks reached comfortable levels.

The recent surge in fuel oil exports is a positive sign for the country’s energy sector and highlights the importance of fuel oil in meeting the country’s energy needs. The increase in fuel oil exports is a result of the rebound in shipping demand and lower prices making fuel oil more attractive to consumers.