China gave a message of relief to deal with the diesel crisis around the world

According to the country's General Administration of Customs (GAC), China's diesel exports have been decreasing at an abnormal rate since the middle of 2021. This trend continued until last October. However, the situation took a positive turn from November.

As all the restrictions imposed to prevent the Corona epidemic are lifted, the wheels of the country's economy are accelerating.

According to GAC data, China exported a total of 54 million tons of refined petroleum products in 2022. Whereas in 2021, six crore and 62 million tonnes were exported in 2020. In the 16 months from July to last October in 2021, China's refined petroleum exports fell far below normal.

The country's diesel exports set a new record in December 2022. The export volume stood at 28 lakh tonnes. But in the month of October, only 11 lakh tons were exported. As a result, the shortfall that occurred since mid-2021 has come down to less than 1.6 million tonnes.

Energy trade is also recovering as China is able to increase exports. Stockpiles are expected to rise again in North America and Europe.

The news agency Reuters reported in a report that the Chinese government may increase the export quota by another step in the first few months of 2023. This will boost diesel exports in the next few months. Beijing is increasing export quotas mainly to encourage the production of refined petroleum products.

Meanwhile, the European Union's ban on Russian petroleum products and diesel will come into effect from February 5. Earlier, the ban on crude oil came into effect on December 5.

Analysts said market uncertainty could increase if the ban on new refined energy products comes into effect. The market price of diesel can become more upward.