China halts fuel exports as Houthi attacks hit Saudi oil facilities

Global energy markets face heightened volatility due to a combination of Chinese export restrictions and renewed military strikes on Saudi Arabian energy infrastructure.

China has ordered its major refiners, including PetroChina, to immediately suspend fuel exports for the month of October. This decision, which also includes a total freeze on shipments from private groups like Zhejiang Petrochemical during the national holiday week, aims to protect China's domestic market. Analysts from Kpler note that Chinese commercial diesel and gasoline stocks are significantly below the levels required to resume exports.

Simultaneously, the Houthi militia in Yemen has launched an attack on an Aramco oil facility in Riyadh, Saudi Arabia, using ballistic missiles and drones. This follows previous strikes on the Yanbu oil terminal and other southern facilities. The escalation in the region, coupled with China's decision to prioritize its own reserves, threatens to create a domino effect on global fuel prices.