China Fuel Export Suspension Sends Oil Prices Soaring
Oil prices surged over $3 on Thursday after China suspended oil products exports to regions beyond Hong Kong and Macau until further notice, exacerbating global fuel market tensions.
The move by Chinese refiners will crimp already constrained fuel markets, with UBS analyst Giovanni Staunovo noting that 'the Chinese export ban suggests concerns about domestic product availability'.
While crude supplies continue to reach the market, diesel and other refined products remain in short supply following damage to refinery infrastructure in the Gulf and Russia.
Brent crude futures traded at $101.20 per barrel at 12:47 p.m. EDT (1647 GMT), up 3.2%, or $3.17, from Wednesday's close, while US West Texas Intermediate crude futures were up $1.58, or 1.8%, at $92 a barrel.
Analysts have raised their average Brent crude oil price forecasts for 2026 to $89.05 a barrel as global diesel inventories remain tight after Russia banned exports through October.