Brent stays above $100 as Market Fear Over Chinese Fuel Export Ban
Brent oil price has been jumping back to over $100 per barrel, as the market is currently fearing over Chinese fuel export ban.
Previously, it was reported that PetroChina (major state oil company from China) had decided to halt shipments of both jet fuel and gasoline that were originally planned for this month. Apparently they did that because the Chinese federal government wants to keep its domestic supplies in the foreseeable future.
This policy is considered very important to the global oil supply chain, since the global market is already stretched to its limit due to the neverending situations in both Russia and Iran.
It is believed that the margins in diesel refining in Asia have risen to about $75 per barrel, which causes a major headache for industries that are dependent on oil.
The constant pressure on oil prices also make it harder for the U.S. Federal Reserve to combat inflation, and it's projected that the Fed will make at least one more interest rate hike before the end of the year.
Currently, Brent crude is trading at $101.64 per barrel at the time of this article's publication. Precious metals like gold and silver have also been doing poorly in the past week, with gold particularly struggling to get over $4,200 per troy ounce.
Related assets: Brent Crude, Crude Oil