China slashes oil product exports to ensure domestic supply: sources in Freight News 09/03/2026 China has temporarily suspended issuing export permission certificates for refining oil product exports since March 4, as the country’s top planner directed refiners and traders to focus on ensuring domestic supply security amid rising concerns over crude oil availability from the Middle East, seven state-owned refinery sources, two analysts and two traders told Platts, part of S&P Global Energy, on March 5. The export reduction in March is expected to be limited since most cargoes have been granted the certificates, while the outflow for April is expected to decrease significantly, refining and trading sources said, adding that the notice widened cracks in the international market. It was circulated in the market that the National Development and Reform Commission’s Department of Trade verbally directed companies at a March 4 meeting to halt all clean product exports, except for three categories: bonded jet fuel exports, bonded marine fuel exports, and supplies to Hong Kong and Macau. Bonded jet fuel and marine exports are intended for refueling carriers departing from China to overseas destinations. The top planner required that, starting from March 4, signing new export contracts be suspended, while for contracts already concluded and with shipping schedules arranged, try to negotiate cancellations. Furthermore, for contracts that have been concluded but do not yet have shipping schedules, it is advised not to export, according to sources with direct knowledge of the matter, who added that the general guideline is to avoid exporting if possible. Sources who spoke to Platts confirmed NDRC’s notice, adding that the requirement is an administrative freeze rather than a formal regulatory change, but it carries significant weight as oral guidance from the NDRC, which oversees China’s energy policy. “We reviewed the group’s exports last night due to the notice,” a Beijing-based source said. NDRC and exporting oil firms did not respond to a request for comment from Platts, part of S&P Global Energy. Within expectation Despite the sudden instruction, the export cut was within expectations, considering the nation’s priority of maintaining domestic supply security. If the war continues to disrupt crude oil flows from the Middle East, Chinese refiners have to cut product exports rather than draw from their abundant crude reserves, Platts reported earlier. Five of the sources with exporting refiners said the government controls exports by issuing permission certificates for outflow. Only with a permission certificate is a cargo of clean oil products allowed to be loaded for export, they said. “I usually apply for the permissions well ahead of loading, at the end of the previous month or at the very beginning of the loading month. For example, I have all the certificates in hand for my March-loading now, although some cargoes are to be loaded in the second half of March,” one of the refining sources said, adding that they will continue with the loading with the permissions. A second refinery source said they would cut exports in March but would ensure supply to Hong Kong and Macao, as well as fulfill the term deals with other countries. A Shanghai-based analyst said the government mandate is a type of force majeure. “Once force majeure is declared, long-term contracts also become nothing but scraps of paper. But I believe refiners would prefer to expor