Oil prices rise US$3 after China suspends fuel exports
Cinese refiners have suspended exports of oil products to regions beyond Hong Kong and Macau until further notice
Oil prices surged more than US$3 on Thursday (Oct 1) after China suspended fuel exports to regions outside Hong Kong and Macau. The move could tighten already strained fuel markets grappling with global supply shortages, amid limited progress in diplomatic efforts to cease the US-Israeli conflict with Iran. The December Brent crude futures contract rose 3.2% to US$101.20 per barrel, while the November contract fell 14% monthly.
US West Texas Intermediate crude futures jumped 1.8% to US$92 a barrel. Chinese refiners halted exports of oil products beyond Hong Kong and Macau until further notice, adding to supply constraints. UBS analyst Giovanni Staunovo noted the potential for higher crude imports if the measures further strain fuel markets. Despite global diesel and refined product shortages, the impact of China's export ban is expected to be less severe than the loss of Russian and Middle Eastern exports.
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