Oil jumps 4pc after China suspends fuel exports

Oil prices surged over four percent on Thursday, reaching above $4 per barrel higher, following a report that the United States was deploying additional military assets to the Middle East and China had halted oil products shipments, fueling concerns about potential global fuel scarcity. The December Brent crude futures contract closed at $102.31 per barrel, marking a 4.37 percent increase or $4.28.

US West Texas Intermediate crude futures ended at $92.87 per barrel, a 2.71 percent rise or $2.45. According to a Wall Street Journal report, the US was preparing to send a third aircraft carrier and up to 10,000 more troops to the region as President Donald Trump contemplated reinitiating strikes against Iran post the midterm elections.

These factors, combined with China's suspension of oil product exports, created a volatile trading environment. Oil prices initially declined by 1 percent in the early hours but quickly rebounded after Reuters disclosed that Chinese refiners had suspended exports of oil products to areas beyond Hong Kong and Macau, citing knowledge from four sources.

Although global crude supplies continue to flow into the market, there is a refined product shortage, including diesel, due to damage to refinery infrastructure in the Gulf and Russia.