NEW YORK — Global oil prices jumped sharply on Thursday, with Brent crude rising more than 4 per cent, after reports that China had suspended exports of refined oil products and concerns grew over additional US military deployments to the Middle East.

The market reaction reflects growing fears that already-tight global fuel supplies could become even more constrained. Brent crude settled at $102.31 per barrel, gaining $4.28, or 4.37 per cent, while US West Texas Intermediate crude settled at $92.87 per barrel, up $2.45, or 2.71 per cent.

China Suspends Fuel Product Exports

Chinese refiners have suspended exports of oil products to destinations outside Hong Kong and Macau for October, according to people familiar with the matter. The decision comes as Beijing prioritizes domestic fuel supplies and seeks to protect local inventories.

The suspension affects important refined products including diesel, gasoline and jet fuel. China had previously tightened fuel exports following disruptions to Middle Eastern crude supplies, before partially relaxing restrictions in July.

Beijing Focuses on Domestic Energy Security

The export suspension appears to be linked to concerns about China's domestic fuel inventories. Trade sources said Beijing has made fuel exports dependent on domestic stocks recovering toward pre-war levels.

According to analysis cited by Reuters, commercial gasoil and diesel inventories were estimated to be around 20 million barrels below the level Beijing considers necessary, while gasoline inventories were roughly 9 million barrels short of that threshold.

Why the Decision Matters for Global Markets

China is the world's largest refining country, and although its refined-fuel exports have generally been lower than those of India and South Korea, Chinese supplies play an important role in Asian fuel markets.

Countries including Singapore, Malaysia, Australia, Vietnam, Bangladesh and the Philippines were among the major destinations for Chinese fuel exports in September. A prolonged suspension could therefore force some buyers to search for alternative suppliers.

Diesel and Jet Fuel Markets Under Pressure

The biggest concern is emerging in refined products rather than crude oil itself. Diesel markets were already tight because of disruptions affecting supplies from the Middle East and Russia.

Analysts cited by Reuters said the loss of Chinese exports could further support diesel and jet-fuel prices, particularly because alternative supplies may not immediately be available in sufficient quantities.

PetroChina Cancels Some October Shipments

State-owned PetroChina reportedly cancelled several gasoline and jet-fuel shipments that had been scheduled for October. Another major Chinese refiner, Zhejiang Petroleum & Chemical, also did not schedule oil-product shipments during the holiday week, according to trade sources.

The developments indicate that China's export restrictions are already affecting commercial planning in the refined-products market.

Middle East Tensions Add to Market Pressure

China's decision came at the same time as growing concerns about the security situation in the Middle East.

A report that the United States was preparing to send another aircraft carrier and as many as 10,000 additional troops to the region added to market uncertainty. President Donald Trump has been weighing his options regarding the conflict with Iran, according to Reuters.

The combination of China's fuel-export restrictions and geopolitical uncertainty contributed to the sharp rise in oil prices.

Global Fuel Supplies Already Under Strain

The latest development comes after months of disruption to global fuel markets. Damage to refinery infrastructure in the Middle East and attacks affecting Russian refining capacity have reduced available supplies of refined petroleum products.

Russia has also maintained restrictions on diesel exports through October, adding another source of pressure to international fuel markets.

Europe Considers Releasing Diesel Stocks

European countries are also considering measures to deal with the tightening fuel market.

Reuters reported that the European Union's energy task force was due to discuss a possible release of diesel stockpiles. The move could provide additional supplies to the market if shortages become more severe.

The possibility of additional strategic stock releases highlights how quickly the supply situation has become a concern for major fuel-consuming economies.

How Long Will China's Suspension Last?

The duration of China's export restrictions remains uncertain.

Sources told Reuters that Beijing could reconsider the policy after China's Golden Week holiday, which runs through October 7. Any decision could depend on domestic fuel inventories and refinery production levels.

If inventories recover sufficiently, exports could eventually resume. If domestic supplies remain tight, restrictions could continue for longer.

Impact on Asian Countries

Asian fuel importers could be among the first to feel the effects of reduced Chinese supplies. Countries that regularly purchase Chinese gasoline, diesel and jet fuel may need to increase imports from other suppliers.

South Korean refiners could potentially cover part of the shortfall, although their available spot volumes are limited because much of their production is already committed under long-term contracts.

Possible Impact on Consumers

Higher international oil and refined-fuel prices can eventually increase costs for consumers and businesses. Transportation, aviation, logistics and industrial operations are particularly sensitive to changes in fuel prices.

The impact on individual countries will depend on local fuel inventories, government pricing policies, import costs and the duration of the supply disruption.

For countries heavily dependent on imported petroleum products, sustained increases in global prices could also place additional pressure on trade balances and inflation.

Oil Market Remains Highly Sensitive

Thursday's price movement demonstrates how sensitive energy markets have become to changes in global supply expectations.

Brent crude had already moved above $100 per barrel before the latest jump. The combination of geopolitical tensions, disruptions to refining capacity and China's decision to prioritize domestic fuel supplies has added another layer of uncertainty for traders and consumers.

What Happens Next?

Markets will closely monitor China's fuel inventories, refinery output and any decision after the Golden Week holiday regarding export permissions.

Investors will also watch developments involving the United States, Iran, the Strait of Hormuz, Middle Eastern oil infrastructure and Russian fuel exports. Any improvement in those areas could ease supply concerns, while further disruptions could place additional upward pressure on energy prices.

PK-News.com Update

The latest oil-price surge reflects a combination of China's suspension of fuel-product exports, already-tight global refined-fuel supplies and renewed geopolitical concerns surrounding the Middle East.

Brent crude settled at $102.31 per barrel, up 4.37 per cent, while WTI ended at $92.87 per barrel. China's decision to restrict refined-fuel exports outside Hong Kong and Macau has raised concerns about additional shortages in diesel, gasoline and jet fuel markets.

The duration of China's restrictions remains uncertain, making the next several days important for global energy markets.

This article was developed and researched by PK-News.com based on reports and information available on October 2, 2026.