XOM - Chinese gas and diesel exports collapse; Beijing capitalizes on new role in oil market

Chinese diesel output rose 14% in April while diesel exports fell 81%; gasoline output fell 6% while exports fell 40%; in aggregate, oil product exports fell over ~50% year on year (XOM) (CVX) (VLO) (MPC) (PSX). The monthly customs data is volatile; however, year-to-date gasoline and diesel exports have fallen by 39% and 82% respectively, with declines accelerating in recent months. The phenomena has left experts puzzled, as record refined product margins, and reduced domestic demand, should lead to higher export quotas and increased high-margin international sales. However, refinery closures in the West and the self-sanctioning of Russian diesel exports have cemented China's role as both the world's largest buyer of oil, and now the world's largest "incremental seller" of refined oil products; a role it appears to be capitalizing on. As the world's largest importer of crude oil (USO), China likely prefers lower crude oil prices; given its size,

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Chinese gas and diesel exports collapse; Beijing capitalizes on new role in oil market