OIL PRODUCTS: China Gasoline and Diesel Exports Decline in July

China's total exports of refined oil products fell 6% y/y to 4.98m tons for July led by gasoline and diesel, General Administration of Customs showed cited by Reuters.

• China's gasoline exports fell 35.7% y/y to 790k metric tons, or 5.77mbpd, in July and down from 930k tons in June, as refiners lowered crude runs amid weakening profit margins and soft domestic demand.
• Gasoline export margins were mostly negative between the second half of June and early July, at roughly - $3/bbl or -$4/bbl, said a Reuters source.
• Statistics bureau last week reported crude oil refinery throughput in January-July was down 1.2% at 419.15 metric tons. "China will likely issue more product export quotas to boost refinery runs," said Emma Li at Vortexa.
• Diesel exports also fell by 41% y/y to the lowest since June 2023 to 540k tons compared to 820k tons in June. Soft demand could persist in the second half of the year amid weakness in property and manufacturing and a shift to LNG for trucking.
• Jet fuel shipments rose 20.2%y/y to 1.76m tons and up from 1.65m tons in June supported by robust demand domestically and the international flight recovery.