Diesel Shortage Fuels Oil Prices.. Kuwait Stock Exchange Under Pressure
Oil jumped 2% driven by China's decision to suspend oil product exports and a global decline in diesel supplies, while Washington pressured France and Germany to draw on emergency reserves.
Translated by Qiyas from النهار — Original source
Oil has returned to the forefront of global markets with force, after its prices jumped by approximately 2% in yesterday’s trading, driven by China’s decision to suspend exports of refined petroleum products. This move threatens to tighten supply in the global fuel market, coinciding with the ongoing repercussions of the wars in the Middle East and Ukraine, and mounting pressure on diesel inventories.
Brent crude for December delivery rose to $100.09 per barrel, up 2.1% or $2.06, while US West Texas Intermediate (WTI) crude climbed 2.28% to $92.48. The nearest-to-expiry Brent contract closed September at $103.50, achieving monthly gains of nearly 14%.
The rise in oil prices comes as the fuel market operates under dual pressures. On one hand, attacks linked to the wars in the Middle East and Ukraine have reduced refining capacities and available diesel supplies. On the other hand, China’s decision introduces a new factor that could exacerbate the shortage of petroleum products, particularly given China’s status as a major player in refining and export markets.
Sources familiar with the matter stated that Chinese refineries have suspended exports of petroleum products to areas outside Hong Kong and Macau until further notice. This could limit the volume of fuel available to external markets and increase competition for supplies. This step coincides with growing pressure on governments to intervene to contain fuel prices, amid declining global diesel supplies and reduced refining capacities.
Washington Presses
In a development reflecting the sensitivity of the diesel market, the US administration has requested France and Germany to release quantities from their emergency fuel reserves to help alleviate global fuel prices, according to informed sources. According to these sources, Washington has hinted at the possibility of imposing restrictions on European diesel exports if Paris and Berlin do not move to utilize part of their emergency stocks. This comes as the US administration explores options to lower fuel prices in the domestic market.
Thus, the energy market faces a more complex equation: lower supplies, refining capacities under pressure, and strategic reserves being converted into a tool to manage the price crisis.
Oil Flows
Conversely, estimates from Goldman Sachs showed that oil exports from Gulf countries, including what it described as "hidden exports," rose to approximately 23.3 million barrels per day during the past week, aligning with the 2025 annual average, with exports doubling in September. These figures reflect the region’s producers’ efforts to maintain crude flows to global markets, as trade and energy movements remain highly sensitive to any developments related to maritime passages, war, and diplomatic negotiations.
Oil in Figures:
- Brent: $100.09
- Brent at November contract close: $103.50
- Brent gains in September: approximately 14%
- West Texas Intermediate (WTI): $92.48
- Gulf exports: 23.3 million barrels per day
- Kuwait General Market Index: 8,713.71 points
- General Market decline: 0.75%
- Trading value: 74.5 million dinars
