Oil prices jumped Thursday, with Brent crude briefly moving above $100 a barrel, after reports that Chinese refiners suspended October fuel exports to protect domestic supplies. The move adds another layer of pressure to already-constrained global energy markets, sending Brent and WTI sharply higher after both benchmarks had initially traded lower.
PetroChina reportedly canceled several October cargoes of gasoline and jet fuel, according to people familiar with the matter. The restrictions come as Beijing seeks to safeguard domestic inventories, tightening supplies of refined products even as crude flows from the Middle East show signs of recovering.
Supply concerns have eased somewhat after Saudi Arabia resumed tanker loadings at its Red Sea port of Yanbu following the restart of its East-West Pipeline. The pipeline is helping move crude out of the Gulf despite the continued closure of the Strait of Hormuz, although analysts say it is operating well below full capacity.
Traders remain focused on the broader geopolitical backdrop, with uncertainty over a lasting resolution to the conflict in the Middle East continuing to weigh on supply expectations. Separate indirect talks between Washington and Tehran took place earlier this week through mediators, but the latest developments suggest a quick de-escalation remains uncertain. For oil markets, the combination of constrained refined-product supplies and fragile crude flows is keeping the risk premium elevated.
