China crude oil futures hit a record high

Yuan-denominated crude oil futures on the Shanghai International Energy Exchange rose to a record high. Prices climbed to 929.4 yuan, or around $138.5 per barrel, the highest level since the contract was launched in 2018.

The rally came amid a worsening global supply outlook following the shutdown of an oil pipeline in Saudi Arabia and continued tensions in the Middle East. Brent and other international benchmarks also rose to multi-month highs.

Additional support came from Chinese refiners, which have stepped up crude oil purchases. Market participants say Chinese refineries are currently among the key marginal buyers, paying high premiums and elevated freight rates.

Against this backdrop, Shanghai crude has been trading stronger than some overseas benchmarks. Oman and Murban futures recently moved above $126 per barrel, while the Chinese contract also reflects higher transportation costs.

High crude oil prices may also support related agricultural markets, particularly edible oils and biofuels, while at the same time increasing logistics costs. This provides an additional supportive factor for the oilseed complex.

Tags: China, prices, crude oil