NEW YORK: Oil prices surged by more than $4 a barrel on Thursday as concerns over potential disruptions to global fuel supplies intensified following reports of increased US military deployments to the Middle East and China’s suspension of oil-product exports.
The new front-month December Brent crude futures contract settled at $102.31 per barrel, up 4.37pc, or $4.28. US West Texas Intermediate (WTI) crude futures ended at $92.87 per barrel, gaining 2.71pc, or $2.45.
According to a Wall Street Journal report, the United States was preparing to send a third aircraft carrier and up to 10,000 additional troops to the Middle East, as President Donald Trump considered the possibility of resuming strikes on Iran after the US midterm elections.
The developments contributed to a volatile trading session. Oil prices initially declined by around 1pc before reversing sharply after Reuters reported that Chinese refiners had suspended exports of oil products to destinations outside Hong Kong and Macau until further notice.
The suspension, according to sources familiar with the matter, has added to concerns over tightening global supplies of refined fuels.
While crude oil continues to reach international markets, supplies of diesel and other refined petroleum products remain constrained following damage to refinery infrastructure in the Gulf region and Russia.
The combination of heightened geopolitical tensions, disruptions to refining capacity and China’s export restrictions has increased concerns that global fuel markets could face further supply pressures.
By Reuters
