Oil rises 2% as China suspends fuel exports, supply concerns intensify

Oil prices rose around 2% on Thursday after China suspended exports of petroleum products, a move that could further tighten fuel markets already facing global supply shortages, while investors continued to assess renewed diplomatic efforts to end the war between the United States and Iran.

Brent crude futures for December delivery, now the front-month contract, traded at $100.09 a barrel at 08:29 GMT, up 2.1%, or $2.06, from Wednesday’s close. The November contract expired on Wednesday at $103.50 a barrel, posting a monthly gain of around 14% in September.

US West Texas Intermediate crude rose $2.06, or 2.28%, to $92.48 a barrel.

Prices were volatile during Thursday’s session, falling more than 1% in early trading before reversing course and moving higher.

China’s fuel export suspension adds to supply pressure

Chinese refiners have suspended exports of petroleum products to destinations outside Hong Kong and Macau until further notice, according to four people familiar with the matter, in a move that could add further pressure to fuel markets already disrupted by war-related supply constraints.

Global diesel supplies have tightened as refining capacity has declined following attacks linked to the wars in the Middle East and Ukraine, increasing pressure on governments to intervene to protect consumers.

The administration of US President Donald Trump has asked Germany and France to release diesel from emergency reserves to help bring down global fuel prices or face the possibility of a US ban on diesel exports, according to three sources familiar with the discussions.

European diesel refining margins stood at around $80.05 a barrel at 08:29 GMT, down roughly 4% from the previous session. Margins had reached a record $95 a barrel on September 23.

Markets monitor diplomatic efforts and Middle East exports

Investors continued to monitor diplomatic efforts and oil exports from the Middle East.

Saudi Arabia resumed loading oil tankers from the port of Yanbu, Reuters reported on Tuesday, after the East-West pipeline had previously resumed operations.

Iran said on Wednesday that it had received a US response to its latest proposal to revive the collapsed Gulf ceasefire agreement.

However, US President Donald Trump denied reports by Axios and CNN, citing US officials, that he was prepared to ease sanctions on Iran and release frozen Iranian funds in exchange for Tehran taking “concrete steps” regarding its nuclear program.

According to Goldman Sachs estimates, oil exports from the Gulf region, including “dark exports” carried by vessels operating with their location-tracking systems switched off, rose to 23.3 million barrels per day last week, in line with the 2025 average, after exports doubled during September.