Oil prices surge over 2% as China halts fuel exports
What's the story
Oil prices surged by over 2% on Thursday, with Brent crude crossing the $100 per barrel mark. The spike comes after reports that Chinese refiners have suspended October fuel exports to safeguard domestic supplies. The global energy market has been under pressure due to supply disruptions caused by the US-Iran war and Russia's invasion of Ukraine.
Export suspension
China safeguarding domestic supplies
According to Reuters, China's state oil giant PetroChina has canceled several gasoline and jet fuel shipments scheduled for October.
The move is part of Beijing's efforts to protect its domestic supplies.
The decision comes amid ongoing supply disruptions in the global energy market due to geopolitical tensions.
Export recovery
Recovery in Middle East crude exports
Oil prices rose earlier in the session as investors noted a recovery in Middle East crude exports.
United Overseas Bank (UOB) reported that crude flows from the region are nearing pre-war levels, although fuel supplies, especially gasoline, are still lagging behind.
This development comes as Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu after restarting operations on its East-West Pipeline.