LONDON: Oil prices edged higher Friday as China’s fuel export restrictions and reports of increased U.S. military deployments to the Middle East raised concerns about global supplies.
Brent crude rose 29 cents, or 0.28%, to $102.60 a barrel at 0022 GMT, while U.S. West Texas Intermediate gained 27 cents, or 0.29%, to $93.14.
The gains came after a sharp rally Thursday, when Brent climbed more than $4 and WTI gained more than $2 as markets reacted to reports of tighter fuel supplies and rising tensions in the Middle East.
China’s decision to restrict refined-fuel exports added to supply concerns. Chinese refiners suspended October fuel shipments, with exports reportedly limited to Hong Kong and Macau during the country’s weeklong holiday.
Beijing had previously tightened fuel export controls in March following the outbreak of the U.S.-Israeli war on Iran, before easing restrictions in July. It has since been managing diesel, gasoline and jet fuel exports on a monthly basis.
It remains unclear whether China will resume broader fuel exports after the holiday ends Oct. 7.
Meanwhile, The Wall Street Journal reported that the United States is preparing to send a third aircraft carrier and up to 10,000 additional troops to the Middle East as President Donald Trump weighs whether to resume strikes against Iran after the U.S. midterm elections.
The developments have added to concerns over potential disruptions to global energy supplies.
The United States has also urged France and Germany to release emergency diesel stocks to help ease pressure on global fuel prices, according to people familiar with the discussions cited by Reuters.
Washington has asked European countries to release 120 million barrels of diesel over six months, while EU nations hold nearly 109 million metric tons of emergency crude and fuel stocks.
KCM Trade chief analyst Tim Waterer said traders were weighing mixed supply signals, with stronger Saudi exports partly offset by concerns over China’s fuel restrictions and the reported U.S. military buildup in the Gulf.
Despite Thursday’s rally, Brent is on track for a 1.93% weekly decline. The benchmark gained about 14% in September, while WTI rose about 4% over the same period.
