China Taps Oil Reserve, Refiners Ramp Up Output

In a rare public statement on Oct. 31, China said it was releasing gasoline and diesel reserves to boost market supply and stabilize prices.

Muyu Xu and Chen Aizhu, Reuters

International crude benchmarks slipped on Nov. 1 but recovered following China’s weekend statement that it would tap its state fuel reserve while national refiners ramp up output sharply to avert a diesel shortage in the world's second-largest oil user.

In a rare public statement on Oct. 31, China said it was releasing gasoline and diesel reserves to boost market supply and stabilize prices.

The news comes after media reports in recent weeks of tight diesel supplies and queues at petrol stations in several provinces.

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