China's Oil Export Ban Sends Prices Soaring $3
Oil prices surged $3 on Thursday after China suspended oil products exports, potentially tightening fuel markets already grappling with supply shortages globally. The move is expected to crimp war-constrained fuel markets further.
The Brent benchmark oil price rose by $3, trading at $101.06 per barrel at 10:52 a.m. ET or 14:52 GMT, up 3% from Wednesday's close. US West Texas Intermediate crude futures were up $1.67, or 1.9%, at $92.09 a barrel.
Chinese refiners have suspended exports of oil products to regions beyond Hong Kong and Macau until further notice, according to four people briefed on the matter. This move will further tighten global diesel supplies, which are already constrained by falling refining capacity due to attacks linked to the Middle East and Ukraine wars.
Nitesh Shah, commodity strategist at WisdomTree, said China's pause removes a source of flexible supply at a particularly difficult moment. Middle Eastern disruptions have reduced the availability of refined products, leaving importers with fewer alternatives.