China Suspends Oil Exports, Sending Brent Prices Soaring

Oil prices surged by around 2% on Thursday as China suspended fuel exports, putting pressure on already-constrained fuel markets globally. The move has sparked concerns about domestic product availability in China and its potential impact on global supplies.

The Brent benchmark oil price rose to $99.77 per barrel in the December contract, up 1.8% or $1.7 from Wednesday's close. US West Texas Intermediate crude was also up by 37 cents or 0.4% to $90.79 a barrel. The Chinese export ban is expected to further tighten global diesel supplies, which have already been impacted by falling refining capacity due to Middle East and Ukraine conflicts.

Nitesh Shah, commodity strategist at WisdomTree, warned that 'China's pause removes a source of flexible supply at a particularly difficult moment.' He noted that Middle Eastern disruptions have reduced the availability of refined products, leaving importers with fewer alternatives. Meanwhile, the Trump administration has asked Germany and France to draw down emergency diesel inventories to help ease global fuel prices or face a potential US diesel export ban.