China just banned the export of all diesel fuel from the country, according to the Financial Times.The move comes in advance of the high-demand summer season and recent protests in the county against rising fuel prices. It’s the second such move by a BRIC nation, with Russia banning gasoline exports through prohibitive export taxes in recent weeks.
But China doesn’t just consume its own diesel, it also ships some to markets like Vietnam, Japan, the U.S., France, and Singapore.
Japan in the wake of the Fukushima and tsunami disasters, has seen its production decline as well.
With the threat of summer power outages looming, the big worry now is that Chinese demand may come in higher than expected, with the IEA saying the country may add 200,000 – 300,000 barrels a day to global demand.
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