On September 15, yuan-denominated crude oil futures on the Shanghai International Energy Exchange reached a record high of ¥929.4 per barrel. This price, equivalent to approximately $138.50, is the highest level recorded since the contract was introduced in March 2018.
The price surge follows drone attacks on September 10 and 11 against the Saudi Arabian East-West pipeline. The strikes, attributed to militias operating from Iraq, forced a temporary halt of the entire route. The pipeline transported 4 million barrels per day, representing 4% of the global oil supply.
The East-West pipeline served as a critical alternative to the Strait of Hormuz for Saudi oil exports. Its closure removed this bypass route amid rising tensions in the region. Brent crude prices rose to between $107 and $108 per barrel, while Oman and Murban benchmarks exceeded $126 per barrel.
Chinese refiners, which process about 14 million barrels per day, are currently paying higher premiums to maintain supply levels. Analysts estimate that restoring the pipeline operations may take between four and six weeks. Sustained high costs could force Chinese refiners to reduce throughput.
