Oil Prices Surge as China Halts Fuel Exports and US Deploys Troops

Oil prices edged higher on Friday after China halted fuel exports and the US moved more troops and an aircraft carrier to the Middle East, sparking concerns over global fuel supplies.

The Brent crude price rose 29 cents to $102.60 per barrel at 0022 GMT, while West Texas Intermediate increased by 27 cents to $93.14. On Thursday, Brent closed more than $4 higher and WTI was up over $2 following the news, stoking fears of global fuel shortages.

The market is taking stock of a 'distinctly mixed set' of signals this week,' said Tim Waterer, chief analyst at KCM Trade, 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 Trump administration has told Germany and France to draw down emergency diesel inventories or face a potential US diesel export ban, according to three people close to the discussions. The EU holds nearly 109 million tons of emergency crude and fuel stocks.