Brent crude jumped back above $100 a barrel on Thursday after a report that Chinese refiners suspended October fuel exports, then extended the move to $104.60 later in the session. Chart technicians pointed to a bull-flag pattern that could carry the contract toward $127.
Brent crude climbed back above $100 a barrel on Thursday, with the global benchmark trading 2.2% higher at $100.15 per barrel after earlier dropping as much as 1%. The rally extended further during the session, with Brent touching $104.60 per barrel, according to a separate technical analysis published the same day.
Chinese refiners' export ban squeezes supply
Reuters reported that China's state oil major PetroChina canceled a handful of gasoline and jet fuel shipments planned for October, citing multiple unnamed sources, as Beijing looks to safeguard domestic supplies. CNBC said it could not independently verify the report.
The move adds pressure to crude oil markets already constrained by the U.S.-Iran war in the Middle East and Russia's full-scale invasion of Ukraine. U.S. West Texas Intermediate futures with November expiry also rose 1.5% to $91.74.
Saudi pipeline eases earlier supply fears
Worries over crude supply disruptions had eased after Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu, restarting operations on its East-West pipeline. According to Trade Nation senior market analyst David Morrison: "Analysts say that the pipeline is nowhere near running at full capacity."
Traders are also watching the diplomatic track, after U.S. and Iranian officials held separate indirect talks with mediators while in New York for the UN General Assembly.
Chart technicians eye a bull-flag breakout toward $127
A bull-flag pattern on Brent's daily chart could point to a breakout target near $127 if the contract closes cleanly above the pattern's upper trendline and holds it as support. The 2026 highs between $110.195 and $113.635 could offer resistance along the way, with the $120 level also seen as a potential profit-taking zone.
Since Brent is positively correlated with dollar strength, a sustained breakout would also likely keep inflation pressures elevated and rates higher across the U.S., EU, UK and Japan, the analysis said. A rejection at the top of the flag, by contrast, could send Brent back toward $98.6, or the $90.185–$95.485 support zone.
Sources: CNBC, Investing.com
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