Brent Crude Surges Past $100 Amid China's Oil Export Restrictions
Oil prices surged by around 2% on Thursday after China halted exports of oil products to most destinations, sparking concerns about tighter fuel supplies worldwide.
The Brent crude price climbed above $100 per barrel for the first time since the previous front-month contract expired. The December Brent crude futures contract rose by $2.06, or 2.1%, from Wednesday's closing price, trading at $100.09 per barrel at 8:29 GMT on Thursday.
China's decision to suspend oil exports to regions outside Hong Kong and Macau until further notice has put additional pressure on global fuel supplies. The move comes as markets are already facing supply constraints linked to the US-Iran conflict and disruptions to refining operations.
UBS analyst Giovanni Staunovo noted that China's export restrictions suggest the country is worried about its domestic availability of oil products, but it remains unclear whether this will lead to an increase in crude oil imports after recent declines in inventories.