Key Points
- Brent stays above $102 a barrel
- WTI trades below $93
- China’s fuel export curbs keep supply concerns high
ISLAMABAD: Oil prices fell marginally in early Asian trade on Friday after surging more than $4 a barrel in the previous session, as investors weighed tighter fuel supplies against signs of improving crude flows from the Middle East.
Brent crude was trading at $102.30 a barrel, down 6 cents, or 0.06 per cent, while US West Texas Intermediate (WTI) crude stood at $92.67, down 20 cents, or 0.22 per cent, according to OilPrice data. Murban crude, however, rose $7.15, or 6.99 per cent, to $109.40 a barrel.
The modest declines followed a massive rally on Thursday, when Brent and WTI gained more than $4 and $2 a barrel, respectively.
The market appeared in a correction phase after the strong rise, with traders watching conflicting supply signals.
However, oil prices remained elevated after China halted refined fuel exports to destinations beyond Hong Kong and Macau, raising concerns about tighter supplies in global diesel and fuel markets.
Oil prices’ nominal decline reflected improved supply in contrast to constrained refined-product supplies following persistent disruptions in the Middle East and Russia, two major supply hubs.
China oil export halt
However, oil prices remained elevated after China suspended exports of refined petroleum products, including gasoline, diesel and jet fuel, to destinations outside Hong Kong and Macau for October.
The move does not cover crude oil exports but reduces the availability of Chinese refined fuels in international markets.
The restrictions add to global diesel and jet-fuel supply constraints, keeping refined products under pressure because of disruptions to Middle Eastern and Russian refining and fuel exports.
China’s move to retain more products for its domestic market could therefore add further pressure to international fuel markets.
The development coincides with a sharp increase in US military presence in the Middle East, including plans involving additional troops and an aircraft carrier, raising concerns about further disruption to regional oil and fuel shipments.
Reports that Washington may deploy another aircraft carrier and additional troops have added to concerns about possible disruptions to oil and fuel shipments.
Brent oil prices gained about 14 per cent in September, while WTI rose about 4 per cent during the month.
Despite some improvement in Middle Eastern crude exports, refined petroleum products remain under pressure, keeping the market sensitive to developments around the Strait of Hormuz.
Crude oil and refined product supply gap
The latest market moves also highlight the widening gap between crude supply and refined-fuel availability.
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Analysts have noted that diesel and other refined products remain particularly tight because of damage to refinery infrastructure, export restrictions and higher shipping costs.
For the week, Brent was still on track for a decline despite Thursday’s sharp gain. It showed how volatile the market has become as traders balance geopolitical risks against efforts to restore regional oil flows.
Oil rollercoaster in 2026
Oil markets have been on a rollercoaster in 2026, swinging sharply in response to the US-Iran conflict, disruptions around the Strait of Hormuz and changing expectations for global supply.
Prices surged as fears of prolonged shipping disruptions threatened crude and refined-fuel flows, then fell as supplies showed signs of improving with peace hopes.
Brent has repeatedly moved through major price levels, including the $100-a-barrel mark, while US West Texas Intermediate (WTI) has followed the same volatile path.
Refinery outages, tighter diesel supplies, higher freight costs, and uncertainty over Middle Eastern exports have fueled price swings, making 2026 one of the most unpredictable years for oil markets.
