China is depleting its oil stockpiles in a potential sign Beijing is looking to boost the economy with a surge in fuel exports

• Roughly 1 million barrels per day have left Chinese oil inventories in the last three weeks, according to Vortexa data cited by Bloomberg.
• Inventories hit 909 million barrels as of September 15, the lowest since May.

Crude oil stockpiles in China are falling, a potential signal that the country is gearing up to export mass volumes of fuel.

Roughly 1 million barrels per day have left Chinese stockpiles in the last three weeks, according to data from Vortexa cited by Bloomberg. Inventories hit 909 million barrels as of September 15, the lowest since May.

Both oil refiners and traders in China have applied for an additional 15 million tons of export quotas. At that amount, year-to-date allocations would match full-year 2021 levels.

That could mean Beijing is preparing to unload a swath of gas and diesel to the market to help boost the economy.

Still, the depletion could also be a seasonal adjustment. According to JPMorgan analysts, the level of crude leaving stockpiles is too high for China to approve for export.

China hasn't fully tapped into its crude stockpile as the country continues to recover from Covid-19 lockdowns and a battered economy that has slowed domestic demand.