Oil Prices Near $103 as Middle East Tensions Rise
Crude oil prices rose in international markets on Friday amid renewed concerns over supplies from the Middle East and reports that China has suspended fuel exports. Brent crude moved close to $103 a barrel again. On Friday (October 2), Brent crude rose 29 cents, or 0.28 percent, to $102.60 a barrel. US West Texas Intermediate (WTI) crude rose 27 cents, or 0.29 percent, to $93.14 a barrel.
Brent had risen by more than $4 and WTI by more than $2 on Thursday. Reports that the United States was sending additional troops and an aircraft carrier to the Middle East, along with China’s decision to suspend fuel exports, raised concerns about tighter global supplies.
Reuters, citing sources familiar with the matter, reported that Chinese refineries had suspended fuel exports to all destinations except Hong Kong and Macau for October. The move is believed to be aimed at increasing domestic fuel reserves. It remains unclear whether exports will resume after the holiday ends on October 7. China’s decision could put further pressure on global supplies of diesel, petrol and jet fuel. Bangladesh and several other Asian countries were major buyers of Chinese fuel in September.
Meanwhile, Reuters, citing a Wall Street Journal report, said the United States was preparing to send a third aircraft carrier and another 10,000 troops to the Middle East. US President Donald Trump is considering whether to resume military operations against Iran. Despite the recent rise, Brent crude is on track to fall by around 1.93 percent on a weekly basis. However, Brent prices rose about 14 percent overall in September. WTI prices increased by about 4 percent during the same period.
To ease pressure on global fuel markets, the United States has urged Germany and France to increase supplies from their emergency diesel reserves. The Middle East situation, China’s export suspension and fuel stock levels in Europe have together kept uncertainty high in the global oil market.
Sources: Times of India, Reuters
