Brent crude climbs 3.7 per cent to $101.64 a barrel as China’s reported export restrictions add pressure to global energy markets already disrupted by the U.S.-Iran war.
Global oil prices rose sharply on Thursday, October 1, after reports that Chinese refiners had suspended fuel exports for October, raising fresh concerns about global energy supplies amid ongoing conflicts in the Middle East and Ukraine.
Brent crude, the international oil benchmark, climbed approximately 3.7 per cent to $101.64 per barrel, while U.S. West Texas Intermediate futures gained 2.3 per cent to reach $92.49.
According to Reuters, Chinese state-owned energy giant PetroChina cancelled several gasoline and jet fuel shipments scheduled for October as Beijing seeks to protect domestic fuel supplies. The report, which cited unnamed sources, has not been independently verified by CNBC.
The reported suspension comes as global energy markets continue to face significant supply disruptions stemming from the U.S.-Iran war and Russia’s ongoing invasion of Ukraine.
Middle East supply disruptions keep energy markets under pressure
Oil markets remain volatile as traders assess the recovery of crude exports from the Middle East following disruptions caused by the conflict with Iran.
According to a Thursday research note from UOB, crude shipments from the region are approaching pre-war levels. However, supplies of refined fuels, particularly gasoline, continue to lag behind.
Some supply concerns have eased following Saudi Arabia’s resumption of oil tanker loading operations at its Red Sea port of Yanbu. The kingdom has also restarted operations along its East-West Pipeline, allowing crude oil to bypass the Strait of Hormuz, which Iran has blocked.
David Morrison, senior market analyst at Trade Nation, said the pipeline has played a significant role in maintaining oil shipments from the Gulf despite the disruption.
Although the pipeline is not operating at full capacity, its reopening has provided some relief to international energy markets and helped moderate earlier price increases.
Traders monitor U.S.-Iran tensions
Investors are also closely watching diplomatic developments between Washington and Tehran amid uncertainty over a potential resolution to the conflict.
According to MS Now, U.S. Secretary of State Marco Rubio ordered the Iranian delegation visiting the United States to leave following the conclusion of the United Nations General Assembly.
U.S. and Iranian officials reportedly held separate indirect discussions with mediators earlier in the week while attending the UN gathering in New York.
The combination of China’s reported fuel export suspension, continuing Middle East supply disruptions and uncertainty surrounding U.S.-Iran negotiations has renewed concerns about global energy availability.
While recovering crude shipments from Saudi Arabia have provided some relief, constrained supplies of refined petroleum products continue to place upward pressure on oil prices.
