Brent crude oil prices for delivery next month reached $100.09 per barrel on Thursday (October 1) with a 2.1% increase. This rise occurred due to the halt in China's petroleum product exports and concerns about fuel shortages in global markets. Brent oil contracts for November delivery, which expired on Wednesday (September 30), traded at $103.50 per barrel, marking a 14% increase in September.
Oil Market Analysis and the Impact of China's Export Halt
Meanwhile, West Texas Intermediate (WTI) crude oil prices also rose by $2.06 or 2.28% to $92.48 per barrel. The prices of both oil benchmarks fluctuated during Thursday's trading, initially dropping by more than 1% in the early hours, but then resumed an upward trend.
Read more: Increase in Oil Prices Due to Pressure on Global Markets
Four sources reported on Thursday that Chinese refineries have halted petroleum product exports to regions outside of Hong Kong and Macau until further notice. This action will create additional pressure on fuel markets and highlight concerns about the supply of petroleum products in the country.
Global and Diplomatic Impacts on Oil Prices
Giovanni Staunovo, an analyst at UBS, stated: "China's export ban indicates concerns about the supply of petroleum products in the country." He also added: "We should wait to see the positive or negative impact of this action on crude oil prices following the recent decline in China's oil and fuel inventories."
Global diesel supply has decreased due to reduced refining capacity caused by the U.S. and Israeli regime's war against Iran and military conflicts between Russia and Ukraine, increasing pressure on governments to intervene and support consumers. Three sources reported that the administration of Donald Trump, the President of the United States, has asked Germany and France to use their strategic diesel reserves to help reduce global fuel prices, or else they may face a potential ban on U.S. diesel exports.
Diesel refining margins in Europe reached about $80.05 per barrel at 8:29 AM GMT on Thursday, which is a decrease of about 4% compared to the previous day. The refining margin had reached an unprecedented $95 per barrel on September 23 (September 1). Investors continue to monitor diplomatic developments and oil exports from the Middle East.
Read more: Return of Middle Eastern Oil Flow to Pre-War Levels with JP Morgan and Goldman Sachs Assessment · Oil Prices Increased Following the Resumption of Saudi Exports
