Oil prices fall after limited gains amid rising supply concerns

Oil prices fell after modest gains at the start of trading today (Friday), following China’s suspension of fuel exports, while the Wall Street Journal reported that the United States would send additional troops and an aircraft carrier to the Middle East, as it also seeks to pressure Europe to draw down its diesel reserves.

Brent crude rose 70 cents, or 0.68%, to $101.61 per barrel, and U.S. West Texas Intermediate crude increased 69 cents, or 0.74%, to $92.18 per barrel. Brent settled more than $4 higher in the previous session, and U.S. crude rose by more than $2, following the Wall Street Journal report and news of China’s export suspension, which fueled concerns about a worsening global fuel shortage.

Sources said that China began a week-long holiday yesterday, Thursday, without giving major refiners the green light to ship exports to regions other than Hong Kong and Macau in October. It remains unclear whether Beijing will resume allowing refiners to export after the holiday ends on the 7th of this month.

Three sources said the Trump administration asked Germany and France to draw from their strategic diesel reserves to help ease the rise in global fuel prices, warning that failure to do so could result in a potential ban on importing diesel from the United States.