Oil Extends Gains as China Tankers Reverse Course in Hormuz

December crude posted a bearish outside day yesterday after the Treasury surprised markets with an accelerated debt buyback plan, shifting borrowing toward the short end of the curve and sparking a sharp reversal in long-term rates. But geopolitics are back in front this morning. The UAE has cut off economic ties with Iran, accusing Tehran of firing ballistic missiles at its territory, and Brent has now risen for a fifth straight day, topping $94. Three China-linked supertankers reversed course in the Strait of Hormuz, a sign shipping risk through the strait is still far from normal. On the supply side, Chinese refiners bought at least 8 million barrels of Iraqi Basrah crude and 10 million barrels of Saudi crude via a rare tender, though total Chinese imports remain well below pre-war levels.Oil tanker in open sea by StockStudio via Shutterstock