Oil Prices Surge Past $100 as China Halts Fuel Exports Amid Middle East Tensions

Oil prices rebounded on Thursday, with Brent crude crossing the $100-per-barrel threshold, driven by reports that Chinese refiners have paused fuel exports for October. The decision adds to existing supply constraints in global energy markets, which are already under pressure from ongoing conflicts in the Middle East and Ukraine.

December Brent crude futures rose 2.4% to $100.36 per barrel, recovering from earlier losses where it traded 1% lower. U.S. West Texas Intermediate (WTI) November futures similarly climbed, gaining 2.5% to settle at $92.70 per barrel.

According to a Reuters report citing unnamed sources, state-owned PetroChina canceled several gasoline and jet fuel shipments scheduled for October. The move is believed to be an effort by Beijing to safeguard domestic fuel supplies. CNBC was unable to independently verify the cancellation reports.

The price rally comes as investors analyze shifting dynamics in Middle Eastern crude flows. UOB noted in a Thursday market update that while crude exports from the region are reportedly approaching pre-war levels, refined fuel supplies—particularly gasoline—remain below normal.

David Morrison, a senior market analyst at Trade Nation, highlighted that Saudi Arabia’s resumption of tanker loadings at its Red Sea port of Yanbu has provided some relief. The kingdom had restarted operations at the East-West Pipeline, which helps transport crude away from the Gulf region now that Iran has blocked the Strait of Hormuz.

“The pipeline has done much of the heavy lifting when it came to moving crude out of the Gulf,” Morrison said on Wednesday. He added that while the pipeline is not operating at full capacity, its continued operation has helped ease some crude supply worries and contributed to recent price retreats.

Tensions remain high as diplomatic efforts between the United States and Iran face delays. U.S. Secretary of State Marco Rubio recently ordered the Iranian delegation visiting New York to depart following the conclusion of the UN General Assembly, according to MS Now. Officials from both nations had held separate indirect talks with mediators earlier in the week.