Shandong refiners seek inventory relief through state majors' export channels, but market impact may remain limited

Shandong independent refineries may soon channel part of their product oil inventories through the export system of China's three largest state-owned oil companies, with initial volumes expected to reach around 82,000 tonnes. While the arrangement could help ease inventory pressure at the margin, its broader implications for market fundamentals are likely to remain limited.

On 22 June 2026, GL Consulting learned that Shandong independent refineries may direct a batch of product oil to China's three largest state-owned oil companies, which would then execute exports using their existing export qualifications and quota allocations. Initial volumes are expected to reach around 82,000 tonnes, while procurement