China Oil Export Ban Sends Global Fuel Prices Soaring

Oil prices surged around 2% on Thursday after China suspended exports of oil products to regions beyond Hong Kong and Macau, tightening fuel markets already constrained by supply shortages globally.

The December Brent crude futures contract traded at $100.09 per barrel at 0829 GMT, up 2.1%, or $2.06, from Wednesday's close. US West Texas Intermediate crude was up $2.06, or 2.28%, to $92.48 a barrel.

UBS analyst Giovanni Staunovo noted that the Chinese export ban suggests concerns about domestic product availability. However, it remains unclear whether this measure will support higher crude imports after recent drawdowns in Chinese crude and fuel stocks.

The Trump administration has reportedly told Germany and France to draw down emergency diesel inventories to help ease global fuel prices or face a potential US diesel export ban.