SINGAPORE, Oct 22 (Reuters) - China's state-run CNOOC has
booked two diesel shipments totalling about 50,000 tonnes for
early November delivery into south China, a rare purchase
spurred by a strong domestic diesel market, several trading
sources said on Friday.
China has been a net diesel exporter in recent years but a
reduction in domestic refinery throughput since June has
tightened supplies and led to a rally in wholesale prices of the
main transportation and industrial fuel.
The government's clampdown on light cycle oil, a blending
component for diesel, by imposing a hefty tax on imports also
cut into supplies.
"Very strong domestic diesel prices have created a window to
bring in imported diesel," said one source.
A widespread power curb as well as soaring natural gas
prices have also lent support to diesel, as some industrial and
commercial consumers shifted to standalone diesel generators and
truck fleets switched to more diesel use from natural gas.
Wholesale diesel prices have soared nearly 60% since
September to around 8,000 yuan ($1,252) per tonne in east
China's Shandong province.
($1 = 6.3877 Chinese yuan renminbi)
(Reporting by Chen Aizhu and Koustav Samanta; Editing by Edmund