Oil jumps 4pc after China suspends fuel exports

Crude benchmarks climbed sharply on Thursday, with the front-month December Brent contract closing at $102.31 a barrel, up $4.28 or 4.37 per cent, according to Dawn. West Texas Intermediate finished at $92.87 a barrel, a gain of $2.45 or 2.71 per cent. Traders responded to reports that the United States was moving additional military assets toward the Middle East and that Chinese refiners had halted shipments of refined fuels.

A Wall Street Journal report said Washington is moving an extra 10,000 troops and a third carrier into the region, while President Donald Trump weighs renewed strikes on Iran after the US midterm elections. Reuters separately reported, citing four individuals with knowledge of the matter, that Chinese refiners had halted oil product shipments to destinations outside Hong Kong and Macau indefinitely. Prices had dipped 1 per cent early in the session before reversing course.

Crude is still reaching the market, but refined fuels are tight after refinery damage in the Gulf and Russia. The shortage of fuels, rather than crude itself, is the main concern behind the latest price rise. Because the squeeze centres on refined products, the trend is most relevant to oil marketing and refining companies.