China halts post-customs jet fuel cargoes, threatens 28% of Aussie imports

China, the biggest source of aviation fuel for Australia, has told its refiners to stop exporting jet fuel, putting at risk cargoes that had not cleared customs by March 11 and raising the prospect of shortages within weeks.

According to market data provider Argus, Chinese officials have instructed refineries not to load shipments that were still awaiting customs clearance as of that date, effectively cancelling at least two upcoming jet fuel cargoes and tightening supply for key export markets including Australia.

“Officials in China have instructed refineries not to load cargoes that had not cleared customs by March 11,” said Argus Asia-Pacific head of oil pricing Aldric Chew, citing emails sent to traders about the new curbs on exports.