NEW YORK: Oil prices jumped on Thursday and settled up more than $4 a barrel, after a report said the US was sending more troops and carriers to the Middle East and China suspended oil products exports, stoking fears that global fuel shortages could worsen.

The new front-month December Brent crude futures contract settled at $102.31 a barrel, up 4.37 per cent or $4.28. US West Texas Intermediate crude futures finished at $92.87 a barrel, up 2.71pc, or $2.45.

A Wall Street Journal report said the US was sending a third aircraft carrier and up to 10,000 more troops to the Middle East as President Donald Trump weighed resuming strikes on Iran after the US midterm elections.

The comments, coupled with China`s suspension of fuel exports, contributed to a volatile trading session.

Oil prices fell 1pc early but reversed course after Reuters reported that Chinese refiners had suspended exports of oil products beyond Hong Kong and Macau until further notice, citing four people familiar with the matter.

While crude supplies continue to reach the market, diesel and other refined products remain in short supply following damage to refinery infrastructure in the Gulf and Russia.-Reuters