Oil rises slightly as market weighs mixed supply signals

Oil prices inched upward on Friday as the market digested a mix of supply-related news. Brent crude rose 29 cents, or 0.28%, to $102.60 per barrel, while U.S. West Texas Intermediate gained 27 cents, or 0.29%, to $93.14. This slight gain comes after a more significant jump of over $4 on Thursday, following reports from the Wall Street Journal and China's decision to limit fuel exports.

Analysts noted that the market is grappling with conflicting information this week. On one hand, the news of a third U.S. aircraft carrier and up to 10,000 additional troops heading to the Middle East, along with the potential resumption of strikes on Iran, has raised concerns. On the other hand, the perception of a more robust Saudi Arabian oil export situation has tempered some of those worries.

China's recent export ban on liquid fuels has also contributed to market uncertainty. The country imposed the restriction after the U.S.-Iranian conflict began, but has since eased it in July. Beijing's current policy of managing diesel, gasoline, and jet fuel shipments on a monthly basis has left refiners unclear about when they can resume exports outside of Hong Kong and Macau.

The situation is further complicated by the U.S. urging European nations to reduce their emergency diesel reserves by nearly 120 million barrels over the next six months to help stabilize global fuel prices.