Oil prices edged higher on Friday as markets reacted to China’s decision to suspend fuel exports and reports that the United States is sending additional troops and an aircraft carrier to the Middle East. At the same time, Washington is reportedly urging European countries to increase withdrawals from their diesel reserves.
Brent crude rose 29 cents, or 0.28%, to $102.60 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 27 cents, or 0.29%, to reach $93.14 per barrel.
The market had already seen strong gains on Thursday, with Brent climbing more than $4 and WTI rising over $2. Those increases were fueled by concerns that China’s export restrictions and growing military activity in the Middle East could worsen the global fuel supply situation.
Despite Friday’s rise, Brent crude remains on track for a weekly loss of about 1.9%, although it posted an impressive 14% gain during September. U.S. crude, meanwhile, increased around 4% over the same month.
Tim Waterr, Chief Market Analyst at KCM Trade, said oil markets are receiving mixed signals. According to him, traders are taking a pause after Thursday’s sharp price swings.
He noted that while improving Saudi oil exports are helping ease some supply concerns, worries remain over the deployment of another U.S. aircraft carrier to the Gulf region and China’s move to restrict exports of refined petroleum products, both of which could tighten global fuel supplies further.
