Oil prices rise 2% as China suspends fuel exports

Crude benchmarks climbed on Thursday, with the new December Brent contract at $100.09 per barrel at 0829 GMT, up 2.1% or $2.06, according to Business Recorder. The move followed a report from four sources that Chinese refiners had halted oil product exports to places other than Hong Kong and Macau. Traders are weighing that step against fuel markets already short of supply during the US-Iran war.

The November contract expired Wednesday at $103.50 per barrel, a September gain of about 14%. US West Texas Intermediate gained $2.06, equal to 2.28%, to $92.48 a barrel after slipping more than 1% earlier. UBS analyst Giovanni Staunovo linked the Chinese ban to domestic supply worries and said it was unclear whether the curbs would lift crude imports.

Diesel supply has tightened as refining capacity fell after attacks tied to the Middle East and Ukraine conflicts, prompting Washington to ask Germany and France to release emergency reserves or face a possible US diesel export ban. European diesel refining margins were down around 4% at about $80.05 per barrel, below the all-time high of $95 reached on September 23. Iran said on Wednesday that a US reply had arrived to its newest proposal for reviving the Gulf ceasefire, while Trump denied reports of sanctions relief for nuclear steps.