China Increases Diesel Exports
November 11, 2022
It is Friday and the headlines have provided some bullish news and prices are higher to start today. News that China may ease some restrictions on travel has the market higher. This news has the market hoping that the world second largest economy will see increased demand.
Crude oil prices rose yesterday being impacted mainly by the large drop in the US dollar index after the US Consumer Price Index fell more than expected for October giving the market hope the Fed may be less aggressive with interest rate hikes going forward.
According to the General Administration of Customs, China’s diesel exports increased significantly in September after being severely restricted over the previous 13 months. Exports increased to 1.73 million tons or 430,000 bpd in September, up from an average of 460,000 tons per month of 114,000 bpd between August 2021 and August 2022. Reuters reported that increased exports will provide some relief amid a global diesel shortage but are unlikely to be enough to stabilize and rebuild global inventories or offset any future disruptions as a result of sanctions on Russian’s fuel exports.
Iran had agreed to a visit by the UN IAEA this month to provide answers the agency and its 36-nation board have long called for on the origin of uranium particles found at three sites. However, Iran has yet to provide new material and its offer came before next week’s quarterly meeting of the IAEA’s Board of governors at which diplomats say they expect Western powers to push for a resolution calling on Iran to cooperate.