On Thursday, oil prices rebounded after earlier losses, with Brent crude rising 2.4% to $100.36 per barrel and U.S. West Texas Intermediate futures climbing 2.5% to $92.70. The increase followed a report from Reuters indicating that PetroChina, China's state oil major, canceled several gasoline and jet fuel shipments for October to protect domestic supplies.
This move comes as global energy markets face ongoing supply disruptions due to the U.S.-Iran conflict and Russia's invasion of Ukraine. Earlier in the session, oil prices had already begun to rise as investors noted a recovery in Middle East crude exports. A note from UOB mentioned that crude flows from the region are approaching pre-war levels, although gasoline supplies remain tight.
The situation has been somewhat alleviated by Saudi Arabia resuming oil tanker loadings from its Red Sea port, aided by the reopening of its East-West Pipeline, which has been crucial for transporting crude amid Iranian blockades.
However, analysts, including David Morrison from Trade Nation, caution that the pipeline is not operating at full capacity, and ongoing geopolitical tensions, particularly regarding Iran, continue to create uncertainty in the market. Traders are closely monitoring these developments, especially after U.S.
Secretary of State Marco Rubio ordered the Iranian delegation in the U.S. to leave following the UN General Assembly, indicating that diplomatic resolutions may be delayed