China's Fuel Export Suspension Sends Oil Prices Soaring

Oil prices surged by around 2% on Thursday after China suspended fuel exports to regions beyond Hong Kong and Macau. This move is expected to tighten fuel markets already strained by supply shortages globally.

The price of US West Texas Intermediate crude rose $2.06, or 2.28%, to $92.48 a barrel, while the new front-month December Brent crude futures contract traded at $100.09 per barrel, up 2.1% from Wednesday's close.

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