Oil prices soar to $103 per barrel again as Middle East supply concerns intensify

Brent crude climbs beyond $100as Strait of Hormuz disruptions choke global oil supplies

Oil prices edged higher on Friday as fresh restrictions on Chinese fuel exports and reports of increased US military deployments to the Middle East kept supply concerns in focus.Brent crude stood at $102.60, higher by 28 cents or 0.27% while WTI crude was trading at $92.96, up 9 cents or 0.10%.The moves came after a sharp rally in the previous session. Brent gained more than $4 on Thursday, while WTI rose by over $2 after reports that the US was sending additional troops and aircraft carriers to the Middle East. News that China had halted fuel exports further heightened concerns about a potential worsening of global fuel shortages.Despite the recent rise, Brent remained on course for a 1.93% weekly decline. The benchmark had gained 14% overall in September, while WTI posted a more modest 4% rise last month.According to the Wall Street Journal, US was sending a third aircraft carrier and as many as 10,000 additional troops to the Middle East. The move came as President Donald Trump weighed whether to resume strikes on Iran after the US midterm elections.

"Now I have to make a decision. They'll either sign a very fair deal, or they won't exist any longer," Trump told reporters at the White House.China's decision on fuel exports was another source of concern for oil markets. Beijing had restricted fuel exports in March following the outbreak of the US-Israeli war on Iran, before easing those curbs in July. It has since been managing shipments of diesel, gasoline and jet fuel on a monthly basis.China began a weeklong holiday on Thursday, with major refiners not receiving approval to export to regions outside Hong Kong and Macau in October, according to sources. It was not immediately clear whether Beijing would again permit refiners to export fuel once the holiday ends on October 7.Meanwhile, the US administration has asked Germany and France to reduce emergency diesel inventories in an effort to ease soaring global fuel prices, according to three people.As the Middle East conflict has stretched beyond seven months, oil markets have remained volatile, although prices have been relatively calmer than the sharp spike to $126 a barrel seen earlier.