Chinese Crude Futures Soar to Record High Amid Saudi Pipeline Disruption

China's yuan-priced crude oil futures have reached an all-time high, exceeding $138.50 per barrel on the Shanghai International Energy Exchange.

The price spike is attributed to a recent shutdown of an oil pipeline in Saudi Arabia, which has disrupted global supplies and led refiners in China, the largest importer, to purchase more cargoes.

Chinese refineries are currently the marginal buyers of crude oil, purchasing at high premiums and freight rates that have kept Shanghai crude relatively strong compared with overseas benchmarks, according to Chaos Ternary Futures Co.

The medium-term outlook for oil prices remains uncertain, with a recession or de-escalation in geopolitics needed to cool down prices.