Oil prices rise $3 after China suspends fuel exports
USO•Brent crude rose $3.17, or 3.2%, to $101.20 a barrel after Chinese refiners suspended oil product exports beyond Hong Kong and Macau until further notice. U.S. WTI crude gained $1.58, or 1.8%, to $92 a barrel.
1. Crude prices climb
Brent crude futures rose more than $3 on Thursday after Chinese refiners suspended oil product exports to regions beyond Hong Kong and Macau until further notice, four people briefed on the matter said. The December Brent contract traded at $101.20 a barrel, up 3.2%, while U.S. WTI futures gained 1.8% to $92.
2. Fuel supply pressures
Diesel and other refined products remain in short supply following damage to refinery infrastructure in the Gulf and Russia. Gasoline, jet fuel and diesel shipments from the region are around half of pre-war levels, an analyst said; Russia has banned diesel exports through October.
3. Stockpile discussions
Brent and WTI pared some gains after two EU diplomats said the bloc’s energy taskforce would meet Friday to discuss a potential release of diesel stockpiles. Sources also said the U.S. administration had urged Germany and France to draw down emergency diesel inventories.
