China's Yuan-Denominated Crude Oil Futures Reach Record High Amid Middle East Supply Fears

China's yuan-denominated crude oil futures on the Shanghai International Energy Exchange (INE) have reached their highest level since the contract was introduced in March 2018.

The surge is due to growing concerns over Middle Eastern oil supplies, particularly after a drone strike hit Saudi Arabia's East-West oil pipeline last week.

The attack led to the temporary shutdown of the pipeline, which carries crude from the Red Sea port of Yanbu and avoids the Strait of Hormuz. Global crude benchmarks rose in response, with Brent Crude touching $108 per barrel and WTI Crude reaching $103 a barrel.

China's yuan-denominated futures climbed to 929.4 yuan ($138.50) per barrel on the Shanghai International Energy Exchange, as Chinese refiners increased their buying activity. The prices of comparable-quality crude grades, such as Oman and Murban, also rose above $120 per barrel.