Oil prices rose around 2% on Thursday after China suspended exports of oil products to most destinations, raising concerns about tighter fuel supplies worldwide. Investors were also watching fresh diplomatic efforts to end the US-Iran war.
Brent crude prices crossed $100 per barrel. The December Brent crude futures contract, which became the new front-month contract, traded at $100.09 per barrel at 8:29 GMT on Thursday. This was an increase of $2.06, or 2.1%, from Wednesday's closing price, according to Reuters.
Brent crude tops $100 per barrel
The previous Brent crude contract closed at $103.50 per barrel. The November contract expired on Wednesday after recording a monthly gain of around 14% in September. The December contract is now the main contract used to track near-term Brent crude prices.
US crude prices also increased. West Texas Intermediate (WTI) crude rose by $2.06, or 2.28%, to $92.48 per barrel on Thursday.
Oil prices moved sharply during Thursday's trading session. Prices initially fell by more than 1% before recovering and rising. The reversal came as traders assessed China's export restrictions, global fuel shortages and developments in the US-Iran conflict.
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{{/usCountry}}Chinese refiners have been told to stop exporting oil products to regions outside Hong Kong and Macau until further notice. Four people familiar with the matter confirmed the development to Reuters on Thursday.
The export restrictions could put further pressure on global fuel supplies. Markets are already facing supply constraints linked to the war and disruptions to refining operations. China's decision could reduce the amount of fuel available to buyers in international markets.
UBS analyst Giovanni Staunovo said the export restrictions suggest that China is worried about the domestic availability of oil products. He added that it remains unclear whether the measures will lead China to increase crude oil imports after recent declines in its crude oil and fuel inventories, Reuters reported.
Global diesel supplies face pressure
Global diesel supplies have also tightened. Refining capacity has fallen following attacks linked to the wars in the Middle East and Ukraine. These disruptions have increased pressure on governments to take action to protect consumers from rising fuel costs.
The Trump administration has urged Germany and France to use emergency diesel stocks. The United States has asked both countries to draw down their emergency diesel inventories to help ease global fuel prices. Three people familiar with the discussions told Reuters that the countries could face a potential US diesel export ban if they do not comply.
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European diesel refinery profit margins stood at around $80.05 per barrel at 8:29 GMT on Thursday, down approximately 4% from the previous session. The margins had reached an all-time high of $95 per barrel on September 23.
US-Iran war and oil exports in focus
Investors are closely tracking diplomatic efforts to end the US-Iran war. Alongside China's export restrictions and global fuel shortages, traders are monitoring developments in the Middle East to assess whether oil supplies could recover or face further disruption.
Saudi Arabia has resumed loading oil tankers at Yanbu. The development followed the earlier restart of operations on the country's East-West Pipeline, which provides an alternative route for transporting crude oil towards the Red Sea. Reuters reported the resumption of tanker loadings on Tuesday.
Iran said on Wednesday that it had received Washington's response to its latest proposal to revive the ceasefire in the Gulf, which had previously collapsed.
US President Donald Trump denied reports about possible sanctions relief for Iran. Axios and CNN had cited US officials as saying Trump was willing to ease sanctions on Iran and release frozen Iranian funds in exchange for concrete steps by Tehran on its nuclear programme. Trump denied those reports.
Goldman Sachs estimated that Gulf oil exports, including shipments carried by vessels with their location-tracking transponders switched off, reached 23.3 million barrels per day over the past week.
Goldman Sachs said exports doubled during September, bringing total shipments back in line with their 2025 average. The recovery could help restore some oil supplies to global markets, although prices remain sensitive to the war, export restrictions and the progress of diplomatic efforts, according to the bank's note cited by Reuters.