China's Yuan Crude Futures Soar to Record High Amid Middle East Tensions

The yuan-denominated crude oil futures contract in China has reached its highest level since its launch in March 2018, due to concerns over Middle East supply and increased Chinese refiner purchases. The INE crude oil futures contract (SC) is a physical-settlement contract priced and traded in Chinese yuan on the Shanghai International Energy Exchange.

The price surge was triggered by the attack on the East-West oil pipeline in Saudi Arabia, which forced the Kingdom to temporarily shut it down. As of Tuesday, no timeline has been given for the pipeline's return to operation.

The international crude oil benchmarks also rose, with Brent Crude hitting $108 per barrel and WTI Crude jumping above $103 a barrel. The Chinese futures are closely tracking similar-quality crudes like Oman and Murban, which traded above $120 per barrel this week.