China Resumes US Oil, LNG Buys Amid Asia Fuel Crisis
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- China is set to load roughly 600,000 barrels per day of US crude oil in April, resuming energy trade that had been suspended since early 2025 when Beijing halted US LNG imports in response to Trump's tariff measures.
- The National Development and Reform Commission ordered a March 11 halt to exports of gasoline, diesel and aviation fuel, with Reuters reporting the curbs will extend through April and allow only 150,000–300,000 metric tons of selective exemptions to Bangladesh, Myanmar, Sri Lanka, the Maldives and Vietnam.
- Strait of Hormuz tanker traffic has fallen sharply since US and Israel struck Iran on February 28, with over 40% of gas stations in Laos closing, Vietnam cancelling flights, and Thailand suspending fuel exports on March 6 as shortages rippled across South and Southeast Asia.
- China re-exported a record 8–10 LNG cargoes in March — about 1.31 million tonnes year-to-date across 19 cargoes — primarily to South Korea and Thailand, capitalizing on high spot prices as other Asian buyers scrambled for supply.
- Beijing dispatched two tankers carrying more than 260,000 barrels of diesel to the Philippines after Manila declared an energy emergency with less than 10 days of diesel supply, and sent roughly 100,000 barrels to Vietnam, reinforcing its role as a swing supplier.
- Chinese commentators are framing the pivot as a competitive win over Japan, with columnist Liang Mi noting China's ~18 million barrels per month (~$10 billion) dwarfs Japan's roughly 3 million barrels booked for April, and tying the move to a smoother atmosphere for Trump's planned May 13–14 meeting with Xi Jinping.
Why it matters: China's simultaneous resumption of US energy purchases and tight grip on regional refined fuel exports gives Beijing direct leverage over Asian neighbors facing acute shortages, with Philippines diesel supply and Vietnamese aviation fuel already dependent on Chinese discretion. The pivot also resets the US-China trade dynamic ahead of Trump's May 13–14 Beijing visit, with one Chinese commentator estimating China's $10 billion monthly crude buy at nearly six times Japan's April bookings.
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