Brent crude hits $102 as US military movements and China export cuts rattle markets

Global oil prices surged by more than 4 per cent on Friday, 2 October, as Brent crude crossed the $100 threshold following reports of increased United States military deployment to the Middle East and a sudden suspension of oil product exports from China. Brent crude futures for the new front-month December contract settled at $102.31 a barrel, rising $4.28 or 4.37 per cent. US West Texas Intermediate (WTI) crude futures climbed to $92.87 a barrel, gaining $2.45 or 2.71 per cent. The price spike follows a report stating the US is sending additional troops and a second aircraft carrier to the Middle East, intensifying geopolitical risk premiums in the energy markets. Geopolitical Tensions and Supply Constraints The market reaction was further compounded by China’s decision to halt the export of refined oil products. This unexpected policy shift has fueled concerns among global traders regarding a potential shortage of diesel and gasoline, particularly as inventories in several regions remain below five-year averages. Energy analysts noted that the simultaneous occurrence of military movements in the Gulf and supply restrictions from the world’s second-largest economy created a volatile environment for crude futures. The $102.31 settlement for Brent represents one of the sharpest single-day increases in recent months, reversing a period of relative price stability. Impact on Global Energy Markets The current price rally is driven by the immediate threat to logistics and…