China Suspends October Fuel Exports as PetroChina Cancels Cargoes, Sending Asian Fuel Spreads Sharply Higher

Remember when China was supposed to bail out the tight global fuel market? The author says they just did the opposite.
Chinese refiners suspended October fuel exports, and $PTR PetroChina cancelled cargoes to protect supply at home. Asian fuel spreads ripped in response. The gasoline prompt spread spiked toward $13 a barrel, the widest of the year, with diesel spreads climbing right behind it.
The author says widening backwardation like this is the physical market telling you barrels are tight today, not next quarter. This is the same squeeze that already has U.S. diesel at record highs, one link up the chain. Supply shock, not inflation, and it does not ease until the barrels come back.