Oil Prices Surge as China Suspends Fuel Exports Amid Global Energy Market Turmoil

Oil prices have reversed earlier losses to rise on Thursday after Chinese refiners suspended October fuel exports, further squeezing war-constrained energy markets.

The move by PetroChina canceled a handful of gasoline and jet fuel shipments that were planned for October, citing domestic supply concerns. This comes as global energy markets grapple with supply disruptions from the US-Iran conflict in the Middle East and Russia's invasion of Ukraine.

Despite earlier losses, Brent crude prices rose 2.4% to $100.36 per barrel, while U.S. West Texas Intermediate futures increased by 2.5% to $92.70. The resumption of oil tanker loadings by Saudi Arabia from its Red Sea port of Yanbu after the kingdom restarted operations on its East-West Pipeline has eased worries over crude supply disruptions.

Analysts say that while the pipeline is not running at full capacity, its reopening provides some relief and has helped oil prices retreat. David Morrison, senior market analyst at Trade Nation, noted that 'the pipeline has done much of the heavy lifting when it came to moving crude out of the Gulf,' given Iran's blockade of the Strait of Hormuz.