Yuan-denominated crude oil futures in China climbed this week to their highest level since the contract was launched in 2018, as supply risks in the Middle East intensified and Chinese refiners stepped up purchases.
The contract in focus is the INE crude oil futures contract (SC), launched in March 2018 and traded on the Shanghai International Energy Exchange. It is a physically settled contract priced and traded in Chinese yuan.
According to data compiled by Bloomberg, the futures price rose as high as 929.4 yuan, or $138.50 per barrel, on the exchange.
The jump followed a drone attack late last week on the East-West oil pipeline in Saudi Arabia, which forced the kingdom to temporarily shut the line. The incident deepened concerns over crude supply from the Middle East.
International oil benchmarks also rallied at the start of the week. As of Tuesday, there was still no timeline for when the pipeline would resume operations. The route helps Saudi Arabia ship crude from the Red Sea port of Yanbu while bypassing the Strait of Hormuz.
Brent Crude reached $108 per barrel, while U.S. benchmark WTI Crude moved above $103 a barrel. Traders are worried that the conflict could escalate further and weaken the tentative recovery in oil flows through the Strait of Hormuz and the broader Middle East seen in recent weeks.
China’s futures are tracking more closely the benchmarks for similar crude grades, including Oman and Murban. Both grades traded above $120 per barrel this week, with the November 2026 Murban contract up 0.69% at $128.64 early on Tuesday.
The rise in yuan crude futures is also being supported by stronger crude buying from Chinese refiners, which have gradually ramped up purchases in recent weeks.
