Oil Prices Edge Higher Amid Mixed Signals and Escalating Middle East Tensions

Oil prices edged higher on Friday after China halted fuel exports and the US is sending more troops to the Middle East, sparking concerns of worsening global fuel shortages. Brent crude rose by 29 cents, or 0.28%, to $102.60 per barrel at 0022 GMT, while West Texas Intermediate increased by 27 cents, or 0.29%, to $93.14.

The market is weighing mixed signals, according to KCM Trade chief analyst Tim Waterer, who noted that traders were 'simply taking a breather' after a disruptive Thursday. A healthier-looking Saudi export picture is being offset by reports of another US aircraft carrier heading toward the Gulf and China's decision to curb refined product exports.

The WSJ reported that the US is sending a third aircraft carrier and up to 10,000 more troops to the Middle East as President Donald Trump weighs resuming strikes on Iran after the US midterm elections. Trump said 'They'll either sign a very fair deal, or they won't exist any longer.'

China imposed a liquid fuel export ban in March but relaxed the curbs in July and is managing diesel, gasoline, and jet fuel shipments every month. The country started a week-long holiday on Thursday without giving major refiners a green light to export to regions other than Hong Kong and Macau.