Oil prices climbed about 2% on Thursday after China halted oil product exports beyond Hong Kong and Macau, raising concerns over fuel supplies amid already tight global markets.
The new front-month December Brent crude contract rose 2.1%, or $2.06, to $100.09 a barrel at 0829 GMT. The November contract expired on Wednesday at $103.50 per barrel after gaining around 14% during September.
US West Texas Intermediate (WTI) crude also advanced $2.06, or 2.28%, to $92.48 per barrel. Prices remained volatile during the session, falling more than 1% in early trading before recovering.
Four people familiar with the matter said Chinese refiners had suspended oil product exports to destinations outside Hong Kong and Macau until further notice. The move could further tighten fuel markets affected by supply disruptions linked to the ongoing Middle East and Ukraine conflicts.
UBS analyst Giovanni Staunovo said the export restrictions indicated concerns over domestic fuel availability in China. He added that the impact on Chinese crude imports would depend on how the country manages its recently reduced crude and fuel inventories.
Global diesel supplies have also tightened as attacks and disruptions have reduced refining capacity. The situation has increased pressure on governments to take steps to protect consumers from higher fuel prices.
Three people familiar with the discussions said the Trump administration had urged Germany and France to use emergency diesel reserves to ease pressure on global fuel prices. Washington has also raised the possibility of restricting US diesel exports if conditions worsen.
European diesel refining margins stood at around $80.05 a barrel at 0829 GMT, down about 4% from the previous session. The margin reached a record $95 per barrel on September 23.
