1 hr ago
Oil Tops $102 as China Curbs Exports, U.S. Deploys Troops
Oil prices went up slightly on Friday.
Brent oil reached more than $102 per barrel.
Prices had risen much more the day before.
China restricted shipments of gasoline, diesel, and jet fuel.
This made traders worry that there might not be enough fuel worldwide.
Reports also said the United States may send more troops and an aircraft carrier to the Middle East.
The United States has asked European countries to release some stored diesel.
These developments made oil traders uncertain about future fuel supplies and prices.
Brent crude rose 29 cents to $102.60 per barrel on Friday, while West Texas Intermediate gained 27 cents to $93.14.
Prices jumped sharply on Thursday after reports that China restricted fuel exports and the United States planned to send more forces to the Middle East.
The Wall Street Journal reported that a third U.S. aircraft carrier and up to 10,000 additional troops could be sent to the region.
China has not authorized major refiners to export fuel beyond Hong Kong and Macau during October, leaving it unclear whether permits will resume after October 7.
The United States has reportedly urged European countries to release 120 million barrels of diesel over six months to help ease fuel-price pressures.
- Who
- Oil traders, China, the United States, and European countries are central to the developments.
- What
- Oil prices rose as China restricted fuel exports and the United States reportedly prepared additional Middle East deployments while urging Europe to release diesel reserves.
- Where
- The reported military activity concerns the Middle East, while the fuel-stock discussions involve China, the United States, and Europe.
- When
- The latest price moves occurred on Friday after a sharp rise on Thursday; China’s holiday runs through October 7.
- Why
- Traders feared worsening global fuel shortages because of China’s export restrictions and possible disruptions related to rising U.S.-Iran tensions.
Key facts
- Brent price
- $102.60 per barrel, up 29 cents on Friday
- West Texas Intermediate price
- $93.14 per barrel, up 27 cents on Friday
- Brent weekly performance
- Down 1.93% for the week after gaining 14% in September
- Reported U.S. deployment
- A third aircraft carrier and up to 10,000 additional troops to the Middle East
- China export policy
- Major refiners were not given approval to export fuel beyond Hong Kong and Macau during October
- Requested diesel release
- The United States reportedly asked the European Union to release 120 million barrels over six months
- European emergency stocks
- European countries hold nearly 109 million tons of emergency crude and fuel stocks
Quotes
Donald Trump
US president
“A healthier-looking Saudi export picture is being offset by reports of another US aircraft carrier heading toward the Gulf and by China’s decision to curb refined product exports.”
CNBC TV 18
“Now I have to make a decision. They'll either sign a very fair deal, or they won't exist any longer”
CNBC TV 18
Sources
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