"The January exports have been wiped out. Judging from the current tight situation, we may not export any barrels in February as well," said an insider source. Sinopec had been expected to export around 10,000 to 20,000 tonnes come January.

China's need for petroleum products has caused widespread rationing of diesel at gas stations across the eastern provinces and these shortages are expected to get worse during the Chinese Lunar New Year holidays due to arrive in late January.

Sinopec accounts for more than 80% of the country's total gas oil exports.