Chinese authorities have reportedly halted the export of refined fuels, including gasoline, diesel, and aviation fuel, for October, with the exception of Hong Kong and Macao. This move has led to an increase in global oil prices, pushing them above $100 per barrel. According to Reuters, major Chinese refineries have canceled planned exports of these fuels, with PetroChina, a key state-owned oil company, calling off several shipments of gasoline and kerosene for the month. These cancellations have occurred mainly in the past two weeks. The suspension of exports may be temporary, as China is currently observing a holiday period and could resume fuel exports after October 7, depending on domestic fuel stock levels and refinery production. Reports indicate that Chinese diesel stocks are 20 million barrels below normal export levels, while gasoline stocks are 9 million barrels short. Analysts suggest that Beijing is prioritizing domestic fuel security over international markets, ensuring that fuel supplies meet internal demand rather than being sent abroad. This decision comes at a time of global fuel market strain. Iranian tensions have disrupted Middle Eastern refined product exports, while Ukrainian strikes on Russian refineries have further limited the availability of refined fuels. In response, the United States has reportedly urged France and Germany to tap into emergency diesel reserves to help stabilize prices, warning of potential export restrictions if they do not comply. Meanwhile, crude oil supply is gradually improving, with Middle Eastern crude flows reaching about 83% of pre-war levels in February. Saudi Arabia has resumed tanker shipments from the Yanbu port on the Red Sea after restarting its East-West pipeline, which avoids the Iran-blocked Strait of Hormuz. However, the pipeline is not yet operating at full capacity. While crude oil supply is improving, the transformation of crude into refined products like gasoline and diesel remains a bottleneck. China's decision to prioritize domestic fuel stocks may worsen this imbalance, as the country's refining capacity is likely to remain focused on domestic needs until its fuel reserves are replenished. In September, China exported approximately 1.4 million tons of diesel, 500,000 tons of gasoline, and at least 2 million tons of aviation fuel, according to market estimates.