Thailand’s Gasoil Exports Highest Since Late 2021 Amid Destocking Drive

Thailand’s gasoil exports soared in July to their highest since November 2021, as refiners sought to pare down inventory levels following active stockpiling earlier this year, according to shipping data and industry sources.

The Southeast Asian country exported 111,100 b/d of gasoil in July, 29% higher than the previous month and 7.6 times the year-to-date low of 14,600 b/d exported in April, according to ship-tracking platform Vortexa. In 2025, Thailand exported an average 45,600 b/d of gasoil, Vortexa data shows.

The export spike put Thailand within rare sight of mainland China, which exported 156,900 b/d of gasoil in July. Thailand’s 85,900 b/d of gasoil exports in June was also relatively close to China’s 108,700 b/d, but gasoil exports from the kingdom are otherwise typically less than half that of China’s.

A major middle distillates exporter in Asia, China has tightened outflows following oil supply disruptions wrought by the Iran war.

Rising inventory levels likely led to Thailand’s gasoil export spike in July, market sources said. Its Ministry of Energy had announced on March 1 that it was suspending petroleum exports due to the Iran war. While no official announcement of the suspension being lifted for gasoil could be found, selling interest in Thai gasoil cargoes started to pick up in May, trading sources said.

Active stockpiling following the start of the Iran war in end-February meant that Thai producers were looking to pare down inventories by May, the sources said. The government issued in early June a special order permitting jet fuel exports to help relieve inventory pressure, which resulted in Thailand shipping out 14,600 b/d of aviation fuel in July, after having exported none from March to June, Vortexa data shows.

The same data shows that around 70% of Thailand’s gasoil exports last month went to nearby Vietnam, twice the proportion for June. Vietnam has been the largest outlet for Thai gasoil exports in recent years, accounting for around 25%-35%. However, the oil trading hub of Singapore has also been a major recipient of Thai gasoil this year, accounting for around 32% in the first half of 2026.

The outlook of Thailand’s gasoil exports remains volatile due to supply uncertainties in the Middle East, market sources said. The country’s Department of Energy Business, however, said earlier this week that crude oil supply is sufficient for all six Thai refineries in August.

—Reporting by Hanwei Wu, hwu@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com