China’s Gasoline Exports Surge Set To Pressure Regional Margins

China’s gasoline exports are poised to surge over the coming quarters, driven by several factors including the issuance of fresh fuel export quotas for the SOEs, refining capacity additions and a continued slowdown in domestic demand, due to slumping petrol-car sales and tighter fuel efficiency measures. In contrast to strong growth in gasoline production, demand for the fuel will be much more subdued, due to cooling economic growth, stricter fuel efficiency measures and downside pressure on consumer confidence and appetite for big ticket items from ongoing US-China trade tensions.