Oil Prices Soar on US Troop Deployment and Chinese Export Ban

Oil prices surged on Thursday, settling up over 4% as global fuel shortages worsened due to US and Chinese actions. The new front-month December Brent crude futures contract settled at $102.31 a barrel, up 4.37%, while US West Texas Intermediate crude futures finished at $92.87 a barrel, up 2.71%. A Wall Street Journal report stated that the US is sending more troops and aircraft carriers to the Middle East, which stoked fears of global fuel shortages.

China's suspension of oil product exports also contributed to the price hike, with UBS analyst Giovanni Staunovo stating that it suggests concerns about domestic product availability. While crude supplies continue to reach the market, diesel and other refined products remain in short supply following damage to refinery infrastructure in the Gulf and Russia.

The European Union's energy taskforce will meet on Friday to discuss a potential release of diesel stockpiles, while sources told Reuters that the Trump administration has asked Germany and France to draw down emergency diesel inventories or face a US diesel export ban. Iran is preparing a broader response if the US resumes large-scale military attacks.

Analysts raised their average Brent crude oil price forecasts for 2026 to $89.05 a barrel, citing lingering disruptions to global oil markets and improvements in exports from the Middle East.