The Shanghai International Energy Exchange saw the contract reach approximately $138.50 per barrel, driven by the forced shutdown of Saudi Arabia’s East-West pipeline. With no clear timeline for the pipeline’s restoration, markets remain on edge. The disruption threatens to bypass the Strait of Hormuz, a vital artery for global energy transit that has already faced significant logistical volatility.
Chinese Crude Futures Surge to Record Highs
Yuan-denominated crude oil futures climbed to a record 929.4 yuan per barrel this week, shattering previous benchmarks set since the contract’s 2018 inception. This sharp rally reflects deepening anxiety over Middle Eastern supply stability following drone attacks on critical Saudi infrastructure and a tactical increase in buying by Chinese refiners.
Global benchmarks mirrored this regional turbulence as Brent Crude climbed to $108 per barrel and WTI pushed past $103. While the Chinese futures contract specifically tracks grades like Oman and Murban—which are currently trading above $120—the broader market upward pressure is compounded by Chinese refiners aggressively scaling up their procurement strategies to secure supply amidst the escalating geopolitical standoff.
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