China Opens the Fuel Tap To Save US, but Replacement Diesel Faces New Obstacles
China provided meaningful relief in August, exporting 1.33 million tonnes of diesel, up 42.1% year on year, and a record 2.55 million tonnes of jet fuel, up 41.4%. Those combined 3.88 million tonnes of middle distillates matter against reduced Russian product availability. Reported attacks on three Russian refineries—Slavyansk, Taneco and Syzran—add to the production pressure, while an extension of Russia’s producer diesel-export restrictions from September 30 through October remains reported but not formally confirmed. Europe also faces reports that at least two refiners will receive no October Saudi crude following the East–West pipeline attack. Can China keep filling the gap? Its January–August refined-product exports were still down 9.6%, so August’s recovery has not erased the earlier shortfall. I would look for another month of sustained exports and actual cargo arrivals before assuming the replacement problem is easing.
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