Chinese exports of petroleum products have not rebounded

The lifting of the export ban has not led to a rebound in Chinese exports of petroleum products. China was exporting 417,000 barrels per day of petroleum products (diesel, gasoline, kerosene) in early May, compared to 750,000 barrels per day before the war. Asian countries such as Malaysia, Indonesia, the Philippines, and Taiwan are highly dependent on the Gulf for their oil supply, and refining output in these countries fell in April and May. Conversely, China’s production of refined products has been increasing. However, it is likely that despite the lifting of the export ban, the Chinese government will continue to pressure refiners to prioritize the domestic market.