China Crude Futures Hit Record on Mideast Supply Fears

**Implied Volatility / Movement:**

China's yuan-denominated crude oil futures have reached their highest level since their 2018 launch on the Shanghai International Energy Exchange. The contract surged to as much as 929.4 yuan, equivalent to $138.50 per barrel, fueled by escalating geopolitical risks in the Middle East and robust buying from Chinese refiners.

The surge follows increased concerns over oil supply disruptions after a drone attack impacted Saudi Arabia's East-West oil pipeline, forcing a temporary shutdown. This event has heightened fears of further conflict escalation, potentially dampening oil flows from the Strait of Hormuz. International benchmarks also saw gains, with Brent Crude reaching $108 per barrel and WTI Crude trading above $103 a barrel.

These Chinese futures are closely tracking similar quality crudes like Oman and Murban, with the November 2026 Murban contract trading at $128.64, up 0.69% on Tuesday. Chinese refiners have been gradually increasing their crude oil purchases in recent weeks, adding further upward pressure to prices.