Global oil prices surge more than 4.3% as US sends a third aircraft carrier to the Middle East and China halts oil exports

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Summary · why it matters

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.

Impact on assets 3

Others▲
⛏Brent Crude Oil Futures
BRENT
▲ PositiveSupplyrelevance

Brent surged 4.37% as Middle East escalation risk and China's export halt raise supply-disruption concerns.

⛏Crude Oil WTI Futures
WTI
▲ PositiveSupplyrelevance

US carrier deployment to the Middle East and China halting October oil exports tighten global crude supply, lifting WTI futures.

⛏Heating Oil Futures
HEATOIL
▲ PositiveSupplyrelevance

Heating oil is a refined crude product; tighter crude supply and China's halt of gasoline/jet fuel exports support distillate prices.