China dispatches a large number of oil tankers to support Southeast Asia; Japan, envious yet helpless, promptly declares its fuel reserves exhausted!

On April 1, Reuters reported that China is preparing to extend its refined oil export restrictions through April, but may grant exemptions for small-scale exports to Southeast Asian nations that have already requested assistance.

Negotiations regarding the shipment of limited quantities of diesel, aviation fuel, and gasoline to Southeast Asian countries are still ongoing, with the total approved export volume possibly reaching up to 1.5 million to 3 million tons. Spot export sales by refiners will remain prohibited. Countries potentially receiving Chinese fuel supplies include Bangladesh, Myanmar, Sri Lanka, the Maldives, and Vietnam.

Seeing that Japan isn’t on this list, the Japan Petroleum Association panicked and promptly announced that as of March 28, 2026, commercial inventories of gasoline, diesel, kerosene, and other petroleum products within Japan had dropped to zero—meaning that directly tradable refined oil products in the market have been completely depleted.

Market analysts suggest that Japan’s move might be an attempt to pressure China into providing rescue aid.

Japan’s oil reserves consist of national reserves equivalent to 146 days of consumption, private reserves equivalent to 101 days, and joint reserves from oil-producing countries equivalent to just 7 days. However, most of these reserves are heavy crude oil, which must be refined before use. Japan’s refining infrastructure is largely designed specifically for low-sulfur Middle Eastern crude, and switching to alternative crude would require $3 billion in investment and take 3 to 5 years to reconfigure—an impossibility under current emergency conditions. Furthermore, the reserves also include process oils necessary to maintain minimum operations at refineries, significantly reducing the actual usable duration.

Daoge believes whether China chooses to provide relief in crude oil and natural gas to Japan depends entirely on China’s own judgment. Under today’s global circumstances, even if Japan continues to declare its commercial inventory exhausted, it has little direct relevance to China.

Original source: toutiao.com/article/1861325219489792/

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