Oil prices head higher after China halts petroleum product exports

Oil prices are rising sharply after China suspended exports of petroleum products, according to Reuters sources. Beijing’s move could further worsen conditions in the fuel market, which is already grappling with a global supply shortage, the agency reports.

Shortly after 18:00 CEST, North Sea Brent crude was up 3.45 percent, trading near 101.40 dollars a barrel. US light crude West Texas Intermediate (WTI) was up about 2.3 percent, trading near 92.50 dollars a barrel.

Oil prices fluctuated today. They fell by more than one percent at the start of trading, then later headed higher again.

"China’s export ban suggests concerns about the availability of products on the domestic market," said UBS analyst Giovanni Staunovo.

He added that it remains to be seen whether the measure will lead to higher crude oil imports.

According to Reuters sources, US President Donald Trump’s administration urged Germany and France to help ease global fuel prices by releasing diesel from emergency reserves. It threatened that otherwise, the countries could face a ban on diesel exports from the United States.

Oil prices in dollars per barrel (about 159 litres)