China July gasoline exports to North Korea almost wiped out
China's gasoline exports to North Korea evaporated to a dribble in July, according to customs data, the strongest sign yet that the suspension of sales of the fuel by state oil major China National Petroleum Corp (CNPC) has cut critical supplies to its isolated neighbor.
Beijing's General Administration of Customs said on Wednesday Chinese shipments of gasoline dropped 97% from a year ago to just 120 t of the fuel-worth little more than $100,000. The number was down from 8.262 Mt in June. Monthly fluctuations in the data are not unusual, but this was the fourth-lowest volume on Reuters' records of customs data going back to January 2010.
Customs data also showed China's trade with North Korea fell last month as a ban on coal purchases from its isolated neighbor slowed imports amid growing pressure from the US to rein in Pyongyang's missile program. A prolonged supply cut would threaten critical supplies of fuel and could force North Korea to find alternatives to its main supplier amid international pressure on Pyongyang to curb its nuclear and missile programs.
At the end of June, Reuters reported CNPC suspended sales of gasoline and fuel to North Korea over concerns CNPC would not get paid for its goods. Fuel prices in the country surged following the cut and the measure is still in place, people familiar with the matter say. "This confirms that CNPC has truly stopped supplies," said one Beijing-based trading source familiar with China's oil transactions with North Korea. "The amount is so small, it's what would typically be lost during transportation."
Gasoline typically accounts for the bulk of fuel exports to North Korea, but July data showed the biofuel and ethanol took the top spot with shipments of 4.137 m3, worth $1.9 MM.
(Reporting by Josephine Mason and Muyu Xu; Editing by Kenneth Maxwell)
Comments