China is set to resume refined fuel exports in October after a short pause, a move that should help ease tight global fuel markets, traders said Friday.

Beijing approved about 3.7 million metric tons of combined diesel, gasoline and jet fuel exports for October, according to two industry sources, Reuters reported via The Hindu. Four traders said exports would restart after the National Day Golden Week holiday.

As the holiday began on Oct. 1, state-owned companies started canceling planned fuel cargoes, IJR reported. PetroChina canceled some scheduled gasoline and jet fuel shipments. China started the holiday without approving exports anywhere other than Hong Kong and Macau.

The October amount is below September's. Chinese refiners had been expected to export slightly more than 4 million tons last month.

China is the world's largest oil importer and has the world's biggest refining industry, IDN Financials reported. It began curbing fuel exports in March to protect supplies at home after the U.S.-Israeli war on Iran disrupted crude oil flows and refinery output in the Middle East. Beijing eased the limits from July to September.

The curbs helped tighten world supplies. Buyers across Asia had to look elsewhere for fuel. China usually manages exports through a quota system, but it has recently vetted shipments month by month.

China's main economic planning agency and its commerce ministry did not respond to requests for comment.

The news comes as diesel prices sit at record highs in the U.S. and Europe. On Friday, President Donald Trump also announced a deal for Russia to release diesel to world markets.

What we know: China approved about 3.7 million metric tons of October fuel exports after a Golden Week halt, traders told Reuters.
What we don't: How much the restart will ease global diesel prices.