Oil prices jumped Thursday after Chinese refiners suspended exports of petroleum products outside Hong Kong and Macau, introducing a new supply constraint into global fuel markets already strained by disruptions tied to conflicts in the Middle East and Ukraine.
December Brent crude rose 2.5% to $100.48 a barrel around 11:45 GMT, while U.S. West Texas Intermediate gained 1.82% to $92.07.
Prices had fallen more than 1% earlier before reversing sharply.
Four people briefed on the matter told Reuters that Chinese refiners have suspended oil-product exports beyond Hong Kong and Macau until further notice.
The decision is particularly important for refined fuels.
Global diesel supplies have tightened as attacks and disruptions reduced refining capacity, increasing pressure on governments and fuel importers.
European diesel refining margins remained near historically elevated levels at about $78.22 per barrel Thursday after reaching a record $95 on September 23.
The United States has separately urged Germany and France to release diesel from emergency reserves to ease supply pressure, according to Reuters.
China’s decision could remove a flexible source of refined products just as other supply channels remain constrained.
There is some offsetting improvement in Middle Eastern crude flows.
Saudi Arabia has resumed tanker loadings from Yanbu after restarting its East-West Pipeline. Goldman Sachs estimates Gulf oil exports, including vessels operating outside conventional tracking systems, recovered to approximately 23.3 million barrels per day over the latest week, roughly matching their 2025 average.
That recovery has not eliminated the fuel-market squeeze.
For financial markets, another sustained rise in oil would have implications beyond the energy sector. Higher fuel prices could reinforce inflation pressure at a time when global bond yields are already climbing and central banks are struggling to determine how much additional monetary tightening is required.
The immediate question is whether China’s suspension proves temporary or becomes a longer-lasting effort to protect domestic inventories.
Markets will also watch whether Chinese refiners compensate by increasing crude imports and whether governments release emergency fuel reserves.
