Oil prices edged higher on Friday as China halted fuel exports, while the US weighed additional military deployments to the Middle East, raising concerns over a potential escalation in tensions with Iran and further disruption to regional energy supplies, according to Reuters.
Brent crude was last quoted at $102.58 a barrel, up 0.26%, while WTI crude stood at $92.91 a barrel, up 0.04%.
Crude prices have now risen for three consecutive sessions as markets weigh tighter fuel supplies from China and mounting geopolitical risks in the Middle East.
Citing a Wall Street Journal report, Reuters said the US was sending a third aircraft carrier and up to 10,000 additional troops to the Middle East as President Donald Trump weighed resuming strikes on Iran after the US midterm elections.
The Pentagon was also considering deploying 10,000 sailors and Marines to the Persian Gulf, giving Trump additional options if he decides to intensify attacks on Iran.
China's restrictions on liquid-fuel exports have added to concerns over global fuel supplies. Beijing restricted fuel exports in March following the outbreak of the US-Israeli war on Iran. The curbs were relaxed in July, after which China began managing diesel, gasoline and jet fuel shipments on a monthly basis.
China began a weeklong holiday on Thursday without giving major refiners the green light to export fuel to regions other than Hong Kong and Macau in October.
The latest developments come as crude flows from the Middle East have largely recovered to prewar levels, although markets remain concerned that the recovery may not be sustained without a lasting agreement to end the conflict.
The prospect of further US military deployments, including another aircraft carrier and 10,000 troops, has raised concerns about a potential escalation in the cionflict.
