Heating Oil Futures

Jet fuel prices in New York and Los Angeles are approaching $5 per gallon as Ukrainian strikes on Russian refineries and reduced Middle East shipments of refined products pressure supplies. Jet fuel reached $4.95 per gallon in New York on Thursday, the highest level since late March, while Los Angeles prices climbed to $4.91, the highest since late April. Gulf Coast prices, the U.S. benchmark region, have declined slightly from last month. Delta Air Lines said Friday it expects to absorb approximately $6 billion in additional fuel costs this year compared to 2025, according to its earnings outlook, and projects a fuel price of $4.25 per gallon for the upcoming quarter. Diesel supplies have faced the most pressure both internationally and in the U.S., with stockpiles at their lowest seasonal levels on record, and jet fuel production has fallen back near March levels after increasing between April and September.

The Oil Fuel Fund Management Committee has resolved to approve a 0.75 baht per litre increase in the price of all fuels, except B20, E20 and E85, which will hold at their current prices, effective from 9 October 2026 onwards. The main reason is tension in the Middle East from attacks on ships in the Persian Gulf and the Strait of Hormuz, which immediately pushed up shipping costs, combined with China halting exports of refined oil products until Singapore stockpiles fell to a five-year low, and US crude inventories dropping by 3.2 million barrels. As a result, diesel prices in the Singapore market on 8 October 2026 surged above 177 US dollars per barrel, while gasoline jumped to nearly 156 US dollars per barrel. The situation has forced the Oil Fuel Fund to carry a compensation burden of about 363 million baht per day, making it necessary to adjust the fund's rates. In the diesel group, ordinary high-speed diesel B7 will have its compensation raised by 0.82 baht per litre to 2.82 baht per litre, with a retail price of 42.94 baht per litre. High-speed diesel B20 will have its compensation raised by 1.32 baht per litre to 7.57 baht per litre, but its retail price stays unchanged at 37.19 baht per litre. Premium diesel will be levied at 1.50 baht per litre. In the gasoline and gasohol group, gasoline will have its levy raised by 0.16 baht per litre to 1.88 baht per litre, with a retail price of 50.43 baht per litre. Gasohol 95 will have its compensation cut by 0.21 baht per litre to 4.63 baht per litre, with a retail price of 41.44 baht per litre. Gasohol 91 will have its compensation raised by 0.21 baht per litre to 4.63 baht per litre, with a retail price of 41.07 baht per litre. Gasohol E20 will have its compensation raised by 0.44 baht per litre to 8.29 baht per litre, with its retail price unchanged at 35.69 baht per litre, and gasohol E85 will have its compensation raised by 0.14 baht per litre to 2.66 baht per litre, with its retail price unchanged at 31.63 baht per litre.

The International Energy Agency, or IEA, has reached an agreement to accelerate the release of oil reserves, prioritising the allocation of diesel under a plan that began in March, in order to ease energy prices that have surged to a record high following the impact of the Iran war on global oil supply. After the announcement, West Texas crude futures for November delivery closed at 88.28 dollars per barrel, down 1.16 dollars, or 1.3%, while North Sea Brent crude futures for December delivery closed at 100.20 dollars per barrel, down 38 cents, or 0.38%. On the earnings front, Samsung Electronics reported that third-quarter operating profit surged to a record high of 10.74 trillion won, or 80.1 billion dollars, an increase of nearly ninefold, though still below analysts' forecasts. Revenue came in at 19.5 trillion won, also below expectations. Meanwhile, Microsoft revealed the price and launch schedule for the Surface Laptop Ultra, its new flagship laptop powered by an Nvidia chip, starting at 2,599 dollars, roughly 400 dollars cheaper than the entry-level 16-inch MacBook Pro, with shipments to customers to begin soon.

The Ministry of Energy is adjusting its plan to cope with a possible prolonged energy crisis, after conflict in the Middle East and disrupted maritime shipping routes caused global oil prices to swing. Pongpol Yodmuangcharoen, spokesman for the Ministry of Energy, said the Cabinet approved a plan to handle fuel crises and a strategic plan for the Fuel Fund for 2026–2029, which supports greater use of biofuels to increase domestic raw material use and cut crude oil imports, amid a still-tight Fuel Fund position. Nalinrat Kittikampolrat, senior director at Asia Plus Securities, assessed that the government has three management options: borrowing money, letting oil prices float, and the approach currently in use, which is asking refinery operators to cut the ex-refinery diesel price by 4 baht per litre from 16 September to 31 October 2026, which leaves refineries bearing about 1 billion baht per month, or roughly 3 billion baht per quarter per refinery. The impact on profits remains limited, however, because refining margins are still high. Suwat Sinsadok, managing director of Globlex Securities, assessed that the Fuel Fund has accumulated losses of almost 100 billion baht and that refining margins are likely to stay high through the first quarter of 2027. Currently, gross refining margins are about 40–50 US dollars per barrel; after deducting operating costs of 10–20 US dollars per barrel and the portion supporting the government, net refining margins remain at about 15–20 US dollars per barrel. He estimated that refinery stocks still have room to rise another 10–15%, ranking TOP as his number one pick, followed by SPRC and BCP. He also said that if global crude oil prices stay around 100 US dollars per barrel, the government can still manage without introducing additional subsidy measures, reducing the risk of intervention, unless global crude oil prices surge to 120 US dollars per barrel.

Kristalina Georgieva, Managing Director of the International Monetary Fund, said in Singapore that even if the conflict in the Persian Gulf region ends soon, energy prices are likely to remain elevated for some time. Brent crude futures reflect market expectations that oil prices will stay high through 2027. Although oil shipments out of the Persian Gulf have begun to recover, prices remain around 100 US dollars per barrel, reflecting high risks and transport costs. Combined with a crack spread that has risen by another roughly 100 dollars per barrel due to a global shortage of refining capacity, retail prices for diesel and other refined products have surged to record highs. Meanwhile, natural gas exports from the Persian Gulf continue to be severely affected because options for transporting liquefied natural gas, or LNG, are limited as long as shipping through the Strait of Hormuz faces threats. Asia and Europe have been hit especially hard, and price pressures could rise further as countries rebuild their oil reserves and energy demand increases with winter approaching. The remarks came ahead of the 2026 Annual Meetings of the IMF Board of Governors and the World Bank Group, the IMF-World Bank Annual Meetings 2026, in Bangkok, Thailand, from October 12 to 18.

California's average diesel price reached $8.35 a gallon this week, up more than 60% from a year ago and 32% above the national average of $6.32, according to the American Automobile Assn. Fresno-based owner-operator Jagroop Singh Deol, who has downsized his fleet from five trucks to two, said a full tank that cost $1,000 at the start of the year now runs over $1,600, and he may leave the industry if prices keep rising. Avninder Singh, chief executive of Bakersfield-based Roadies, said monthly fuel costs have jumped to $450,000, wiping out all profit margins, and he now pays $2,400 to fill a tank that cost $1,200 at prewar prices of $4 per gallon. Between August and September, at least 16 freight companies nationwide filed for bankruptcy amid record diesel prices, and small-business truckers make up more than 90% of U.S. trucking companies, according to the Owner-Operator Independent Drivers Assn. The Group of Seven wealthy nations agreed on Oct. 2 to release 100 million barrels of emergency oil reserves over the next four months, while Gov. Gavin Newsom allowed early sales of cheaper winter-blend gasoline and the Trump administration expanded tax-exempt red dye diesel to on-road trucks.

China has suspended exports of refined fuel to markets outside Hong Kong and Macau starting in October, until the government issues a change in orders, in order to prioritise domestic energy security. This has tightened supply of gasoline, diesel and jet fuel in Asia and helped keep refining margins for refineries outside China at high levels. Data from Vortexa, reported by Reuters on 6 October 2026, showed that exports of crude oil, condensate and oil products from the Persian Gulf region, excluding Iran, recovered to about 81% of pre-conflict levels in September, with crude and condensate exports recovering to about 91% of previous levels, while refined product exports recovered to only about 60% of pre-conflict levels. In Saudi Arabia, the energy minister said on 6 October 2026 that oil volumes pumped through the East-West Pipeline rose to 5.8 million barrels and that about 4 million barrels per day of crude could be transported through the route, after the system was restored following damage from a drone attack on 11 September. In the United Arab Emirates, fuel oil volumes entering Fujairah rose to 2.6 million tonnes in the third quarter of 2026 from 845,000 tonnes in the second quarter, and the UAE exported more than 1.4 million tonnes of fuel oil in September, the highest level in more than a year. For India, which has 23 refineries with total refining capacity of about 5.6 million barrels per day, exports of diesel, gasoline and jet fuel totalled about 47 million tonnes in 2025, compared with about 25.4 million tonnes for China. But in the first nine months of 2026, India's export volumes fell about 23% from the same period a year earlier, due to crude feedstock constraints and export tax measures, before crude imports from the Middle East recovered in September to more than 11.3 million tonnes, the highest since February. Reuters reported that the refining margin for 10 ppm low-sulphur diesel rose above 87 dollars per barrel, hitting a record high, compared with about 22 dollars per barrel before the conflict, and freight rates on the Middle East-to-Asia route surged sharply, from about 30,000 dollars per day to as high as about 1.2 million dollars per day at some points. For Thai refinery operators, the high spread between refined product prices and crude oil prices is a positive factor. Thai Oil Public Company Limited, or TOP, has a diversified product structure, especially in middle distillates, while Star Petroleum Refining Public Company Limited, or SPRC, relies mainly on refining and is therefore quite sensitive to gross refining margins. Bangchak Corporation Public Company Limited, or BCP, in addition to its refinery business, also has downstream businesses and a sustainable aviation fuel business, or SAF, which helps diversify its revenue sources. If China continues to restrict exports, while refined product exports from the Middle East have not fully recovered and India cannot yet add enough supply to compensate, the tightness in diesel and jet fuel is likely to persist, which would support refining margins and could benefit the refinery businesses of TOP, SPRC and BCP in the fourth quarter of 2026.

The U.S. Energy Information Administration, or EIA, has raised its oil price forecasts for this year and next after global oil inventories fell sharply due to the impact of the Iran war on world oil supply. In its Short-Term Energy Outlook published on Tuesday, October 6, it said the attack on Saudi Arabia's East-West Pipeline reflected the risk that global oil supply could be disrupted further. The EIA expects Brent crude to average about 105 dollars per barrel in the fourth quarter of this year, up 14 dollars from its previous estimate. Meanwhile, U.S. retail diesel prices, which hit a record high last month, are likely to stay above 6 dollars per gallon in October before gradually easing to an average of about 4.50 dollars per gallon in 2027. For the full year 2026, the EIA raised its average Brent crude forecast to about 98 dollars per barrel, up 8% from last month's estimate, and expects the Iran war to cut global oil production in 2026 to 101.1 million barrels per day, down from a record high of 106.3 million barrels per day in 2025, while oil demand will fall from 104.4 million barrels per day to 102.4 million barrels per day. However, the EIA expects the oil market to recover in 2027, with global production rising to a record high of 109.6 million barrels per day and demand increasing to 104.6 million barrels per day, and it expects Brent crude to average about 84 dollars per barrel in 2027, 10 dollars above its previous estimate.

Russell Hardy, chief executive of commodities trading giant Vitol, said on the 6th that over the past seven to ten days, about 12 million barrels a day of crude oil and 2 million barrels a day of refined products, a total of roughly 14 million barrels a day, were shipped by tanker from the Middle East. Speaking at an Energy Intelligence Forum held in London, Hardy noted that with Western inventories nearly depleted, supplies of 10 million to 14 million barrels a day are supporting the balance of supply and demand in energy markets heading into winter, and said that without this supply, a scenario in which crude prices reach 200 dollars a barrel is possible. The global oil market has shown considerable resilience this year in the face of successive supply disruptions, he said, with what began as a crude oil crisis turning into a refined products crisis and now taking on the appearance of a maritime shipping crisis. Hardy said shipping costs have surged sharply because they cannot be predicted even within a margin of 2 to 4 dollars a barrel, and everyone is feeling a heavy burden. He also expressed the view that tightness in the refined products market will continue through the winter, explaining that the world still lacks refining capacity, mainly because of attacks on Russian infrastructure and the loss of five months' worth of refining operations in the Middle East.

Saudi Aramco CEO Amin Nasser said global commercial oil inventories have fallen to a stress point, with less than 6 billion barrels remaining and only 10% or less practically available to the market. Speaking at the Energy Intelligence Forum in London, Nasser said more than 1 billion barrels have been released primarily from onshore commercial inventories since the start of this year's Middle East crisis, describing stockpiles as the last major tool available. The International Energy Agency is preparing to release 100 million barrels of crude and diesel to address rising diesel prices, though it remains unclear whether some of that volume will include portions of its record 400 million barrel release in March that have not yet reached the market. Nasser said the IEA decision took a lot of negotiations, and that inventories are reaching a stress level, which is why the agency struggled with 100 million barrels. World oil demand stands at about 102 million barrels per day, according to the IEA, and Nasser noted substantial global demand to build additional inventories.

Chevron CEO Mike Wirth said Tuesday that the energy system is more fragile than earlier in the Middle East war as oil and gas market fundamentals tighten, according to Reuters. Speaking at the Energy Intelligence Forum in London, Wirth said the landed price of physical oil in Asia is currently closer to $150/bbl than current Brent prices of ~$100/bbl. He added that refined products markets are also tightening, driving gasoline and diesel prices well above underlying crude, which has pushed G7 governments to implement a 100M-barrel crude and diesel strategic reserve release amid threats of a potential U.S. ban on exports. Wirth warned that restricting supply through an export ban would constrain supplies when the world needs them, saying the U.S. is not independent of world markets and that a diesel ban could raise prices for consumers in some parts of the U.S. and send a bad signal to allies that rely on American supplies. He also said oil and gas demand will continue to grow after the end of the Iran war, and that Chevron could join an Iraq-to-Mediterranean oil pipeline consortium.

Goldman Sachs expects diesel prices to remain elevated through 2027 as refineries worldwide face capacity constraints, while oil demand looks set to recover after governments and businesses began restocking depleted inventories. Nikhil Bhandari, co-head of Asia-Pacific natural resources research at Goldman Sachs, told CNBC that keeping diesel prices high is necessary to prevent demand from rebounding too strongly and adding further pressure on the refining system. Goldman Sachs expects the spread between diesel and jet fuel versus global crude prices to average more than 40 dollars per barrel in 2027, more than double the normal level of 20 dollars per barrel. It also expects Brent crude to hold steady at 80 dollars per barrel as crude shipments through the Strait of Hormuz gradually return to normal. Bhandari believes that if oil demand recovers next year, refineries worldwide may have to run at the highest rate in 20 years. Baden Moore, a resources and energy research analyst at CLSA, said the recent slowdown in demand does not mean oil demand has disappeared permanently, noting that demand for basic petroleum products remains strong and that global restocking could take as long as two years.

U.S. President Donald Trump is urging Republican supporters to vote by mail if they wish in the November 3 midterm elections, even though he previously alleged that the method was riddled with widespread fraud. Meanwhile, diesel prices in the United States surged to a record high of 6.529 dollars per gallon in late September, amid supply disruptions caused by the situation in the Middle East, as well as refining disruptions resulting from the Russia-Ukraine war. As a result, President Donald Trump signed an executive order yesterday, October 5, to open the way for the general public to access tax-exempt red-dyed diesel. On the corporate front, Monogatari, the operator of the popular grilled-meat restaurant chain Yakiniku King, which has more than 350 locations across Japan, disclosed that data on more than 10 million customers, or nearly its entire registered user base, had leaked after the system supporting its restaurant reservation and loyalty-points app was accessed without authorization. Meanwhile, OpenAI is raising at least 30 billion dollars, aiming for a company valuation of about 1.4 trillion dollars, and has pushed back its plans for an initial public offering by at least a year. The World Bank, for its part, raised its forecast for economic growth in East Asia and the Pacific to 4.5% in 2026, 0.3 percentage points higher than it projected in April, supported by exports related to artificial intelligence.

UBS said in a research report that global oil demand is likely to keep rising into the 2030s as population growth, urbanization and higher living standards in emerging markets offset slower fuel consumption from electric vehicles and efficiency gains. Global oil consumption reached a record 105 million barrels per day in 2025, equivalent to roughly 17 billion litres a day, or about two litres per person globally. UBS said transportation accounts for slightly more than half of demand, while petrochemicals, industry, buildings and power generation make up much of the remainder, with road transport alone accounting for less than half of global oil demand, passenger vehicles 27% and road freight 18%, aviation 7%, shipping 4%, rail and waterways 2%, petrochemicals 15% and other industrial uses 13%. The bank said India is increasingly positioned to take over from China as a major driver of global oil-demand growth, with India's oil consumption at about 0.6 litres per person per day versus around 1.9 litres in China, and it flagged significant growth potential in India, Indonesia, Pakistan and Nigeria as incomes rise and urbanization accelerates. UBS expects electric vehicles and improving fuel efficiency to eventually curb gasoline and diesel demand, with those fuels likely to peak sometime over the next decade, but said most growth is likely to come from sectors outside road transportation, particularly petrochemical feedstocks such as naphtha, liquefied petroleum gas and ethane, alongside rising jet-fuel consumption. The report also cautioned that oil consumption figures can be distorted in countries with large petrochemical industries or major transportation hubs, citing Singapore's exceptionally high per-capita consumption because of its role as a global marine-fuel bunkering centre and aviation hub.

The US government is calling on its European allies to immediately release diesel from emergency reserves into the market to ease tight global supply. Treasury Secretary Scott Bessent posted on social media on Thursday, October 1, that the United States is doing its part and hopes allies will follow through on their commitments as well. Trump told reporters in Texas the same day that the US may ask European countries to release diesel stocks, although he had previously said he was seriously considering a ban on US diesel exports. This week, however, that stance began to soften after crude oil exports through the Strait of Hormuz picked up again. The US government is under political pressure to address soaring fuel prices before the midterm elections in November. Data from the American Automobile Association shows the average US diesel price hit a record high of $6.50 a gallon in late September, up sharply from a year earlier, amid the fallout from the war with Iran and Russia's full-scale war in Ukraine.

Goldman Sachs said on the 2nd that if the United States bans diesel exports, Latin America would be the region most affected. According to the report, imports from the United States account for more than 50% of consumption in Ecuador, Chile, Mexico and Peru, and a sudden halt in US supply could shave about 1% off Latin America's gross domestic product. However, drawing down inventories and increased exports from outside the United States would soften the impact. Goldman estimates that if the United States bans diesel exports, US retail diesel prices would fall by 0.25 dollars per gallon for each week the ban lasts, and after one month the measure would be expected to push down overall US inflation by 2 to 3 basis points. US President Trump said on September 30 that he is discussing a diesel export ban "every day," and the US administration is moving quickly to curb surging energy prices. According to three people familiar with the discussions, the Trump administration has asked Germany and France to release emergency diesel reserves to ease the global surge in fuel prices, warning that the United States could ban diesel exports if they refuse.

Refinery stocks led by TOP and SPRC rose sharply today after China restricted exports of oil products, prompting the market to expect that supplies of refined fuels in Asia may tighten, particularly diesel and jet fuel. At 10:28 a.m., TOP stood at 71.50 baht, up 4.50 baht, or 6.72%, with trading value of 1.09 billion baht, while SPRC stood at 14.70 baht, up 0.70 baht, or 5.00%, with trading value of 287.21 million baht. Brent crude rose 29 cents, or 0.28%, to 102.60 dollars per barrel, and WTI rose 27 cents, or 0.29%, to 93.14 dollars per barrel, after China did not allow major refineries to export diesel, gasoline, and jet fuel to markets outside Hong Kong and Macau in October. Meanwhile, the United States is preparing to send a third aircraft carrier and additional troops of up to about 10,000 personnel to the Middle East, and has called on Germany and France to release diesel from emergency reserves, proposing that the European Union release a total of about 120 million barrels of diesel over the next six months.

Global oil prices rebounded sharply on Thursday, October 1, after reports that the US is preparing to send a third aircraft carrier along with additional troops to the Middle East, while China suspended oil exports in October, raising concerns that global oil supply will tighten further. North Sea Brent crude futures for December delivery closed at 102.31 dollars per barrel, up 4.28 dollars, or 4.37%. West Texas Intermediate crude futures for November delivery closed at 92.87 dollars per barrel, up 2.45 dollars, or 2.71%. Foreign media reported that the US Department of Defense may send one more aircraft carrier, along with about 10,000 troops and marines, to the Persian Gulf. The aircraft carrier USS Theodore Roosevelt has already departed from a naval base in San Diego and is expected to arrive in November. If it reaches the Middle East, the number of US carrier groups in the region will stand at three, up from the current USS George H.W. Bush and USS George Washington already deployed there. Scott Modell, chief executive of Rapidan Energy and a former CIA officer, said in an interview on CNBC's Squawk on the Street that he expects the president to escalate operations after the midterm elections, adding that he has consistently heard that Iran will escalate the conflict before the midterms. Meanwhile, a maritime security agency said at least three oil tankers were attacked this week while trying to transit the Strait of Hormuz. At the same time, China has ordered domestic refineries to halt exports of gasoline and jet fuel scheduled for October delivery, reflecting that China is preserving domestic energy supply to meet domestic demand amid the risk of a major energy supply disruption, after Ukraine attacked refineries in Russia, prompting Moscow to impose a ban on diesel exports as well. Iran and its Houthi allies have also attacked refineries in the Middle East. In the United States, there were reports that Trump was considering banning diesel fuel exports, but the US leader has softened that stance.

Chinese refineries have suspended exports of refined oil products for October 2026 as China seeks to shore up its domestic oil market, according to sources cited by Dao Securities. China entered a week-long holiday last Thursday and has not yet approved major refineries in the world's largest refining hub to export fuel products to regions other than Hong Kong and Macau for October 2026. Previously, China restricted fuel exports in March 2026 after conflict in Iran disrupted crude oil supply from the Middle East, before easing measures in July and managing diesel, gasoline and jet fuel shipments on a monthly basis. It remains unclear whether China will resume allowing refineries to export goods after the holiday ends on October 7, 2026, and this may depend on domestic fuel inventory levels and refinery capacity. Meanwhile, China's National Development and Reform Commission has not yet responded to requests for comment due to the public holiday. The move is seen as positive for refineries in the short term, as export restrictions will help support product price spreads and crude oil prices. For the overall refinery business outlook in the third quarter of 2026, refineries as a group are expected to report earnings that continue to grow year on year but soften quarter on quarter, tracking market and base refining margins that benefit from strong crack spreads but are offset by high freight costs and refinery price cuts. The investment rating for the energy sector remains at market weight, and upstream energy stock PTTEP remains favored with a target price of 180.00 baht, supported by expectations that average oil selling prices will hold at high levels in the third quarter of 2026.

The Oil Fuel Fund Management Committee has approved an increase in retail prices for all types of fuel by 0.75 baht per litre, effective from 2 October 2026. The increase stems from intensifying tensions in the Middle East and the lack of clear progress in indirect peace talks between the United States and Iran. On 1 October 2026, diesel prices in the Singapore market jumped above 179 US dollars per barrel, while gasoline surged above 157 US dollars per barrel. As a result, the Oil Fuel Fund has had to bear compensation costs of about 430.14 million baht per day, making it necessary to reduce the burden in order to maintain liquidity for long-term price stability. For the diesel group, ordinary high-speed diesel received an additional subsidy of 0.28 baht per litre, bringing the subsidy to 4.07 baht per litre, with a retail price of 42.19 baht per litre. High-speed diesel B20 received an additional subsidy of 0.15 baht per litre, bringing the subsidy to 8.14 baht per litre, with a retail price of 37.19 baht per litre. Premium diesel is levied at 1.50 baht per litre. For the gasoline and gasohol group, gasoline reduced its levy by 0.79 baht per litre to 1.50 baht per litre, with a retail price of 49.68 baht per litre. Gasohol 95 and 91 received an additional subsidy of 0.69 baht per litre, bringing the subsidy to 5.04 baht per litre, with retail prices of 40.69 baht per litre and 40.32 baht per litre respectively. Gasohol E20 received an additional subsidy of 0.59 baht per litre, bringing the subsidy to 8.03 baht per litre, with a retail price of 35.69 baht per litre, and gasohol E85 received an additional subsidy of 0.01 baht per litre, bringing the subsidy to 2.58 baht per litre, with a retail price of 31.63 baht per litre. The Oil Fuel Fund asks the public to use fuel economically and only as necessary, in order to reduce expenses and strengthen the fund.

China has announced a ban on major domestic refineries exporting refined oil products to other regions in October, with the exception of Hong Kong and Macau, amid concerns about domestic oil reserves. Chinese refineries have already suspended exports of refined oil products for October, according to four sources. Earlier, the Chinese government announced restrictions on fuel exports in March as the Iran war disrupted crude oil supplies from the Middle East, but it later eased those controls in July and is now managing exports of diesel, gasoline and jet fuel on a monthly basis. On Wednesday, state-controlled PetroChina cancelled a number of planned shipments of gasoline and jet fuel for October, while Zhejiang Petrochemical scheduled no shipments of oil products during the holiday week. The government has set the condition that exports can proceed only once domestic oil reserves return to pre-Iran war levels. For September, China exported about 1.4 million tons of diesel, 500,000 tons of gasoline and at least 2 million tons of jet fuel, including volumes under the bonded warehouse system for Hong Kong and Macau. Michal Meidan, head of China energy research at the Oxford Institute for Energy Studies, said this reflects that the Chinese government wants to focus on building domestic supply security, while overseas markets are only a secondary matter.

The U.S. Energy Information Administration, or EIA, reported that U.S. crude oil inventories rose by 922,000 barrels last week, defying analysts' expectations of a 700,000-barrel decline. Meanwhile, crude stocks in Cushing, Oklahoma, the delivery point for U.S. crude futures contracts, increased by 553,000 barrels. Gasoline inventories fell by 1.6 million barrels last week, more than the 500,000-barrel decline analysts had expected, while distillate inventories, which include heating oil and diesel, dropped by 2.2 million barrels, exceeding analysts' forecast of a 200,000-barrel decline.