LONDON, Oct 1 - Oil prices rose around 2 per cent today after China suspended oil products exports, potentially tightening fuel markets already coping with supply shortages globally, while investors continued to assess renewed diplomatic efforts to end the United States-Iran war.
The new front-month December Brent crude futures contract traded at US$100.09 per barrel at 0829 GMT, up 2.1 per cent, or US$2.06, from yesterday’s close. The November contract expired yesterday, settling at US$103.50 per barrel, marking a monthly gain of around 14 per cent in September for the front-month contract.
US West Texas Intermediate crude was up US$2.06, or 2.28 per cent, to US$92.48 a barrel.
Prices were volatile today, having slipped more than 1 per cent in early trading, before rebounding.
Chinese refiners have suspended exports of oil products to regions beyond Hong Kong and Macau until further notice, four people briefed on the matter said today, a move that will further crimp war-constrained fuel markets.
“The Chinese export ban suggests concerns about domestic product availability,” UBS analyst Giovanni Staunovo said, adding that it remains to be seen whether the measures will support higher crude imports after recent drawdowns in Chinese crude and fuel stocks.
Global diesel supplies have tightened as a result of falling refining capacity due to attacks linked to the West Asia and Ukraine wars, raising pressure on governments to intervene to shield consumers.
The Trump administration has told Germany and France to draw down emergency diesel inventories to help ease global fuel prices or face a potential US diesel export ban, three people close to the discussions said.
European diesel refinery profit margins were trading at around US$80.05 per barrel at 0829 GMT, down around 4 per cent from the previous session. The margin hit an all-time high of US$95 per barrel on September 23.
Investors continued to watch diplomacy efforts and oil exports in West Asia.
Saudi Arabia resumed oil tanker loadings from Yanbu, Reuters reported on Tuesday, after earlier restarting operations on its East-West Pipeline.
Iran said yesterday it had received a US response to its latest proposal to resurrect the collapsed ceasefire in the Gulf.
However, US President Donald Trump denied reports by Axios and CNN citing US officials as saying he was willing to give Iran sanctions relief and release frozen Iranian funds in return for “concrete” steps by Tehran on its nuclear programme.
Goldman Sachs estimates Gulf oil exports, including “dark exports” involving ships operating with their location transponders turned off, have recovered to 23.3 million barrels per day over the last week, in line with their 2025 average, as exports doubled in September, it said in a note on Tuesday.
