The announcement would seem to end the threat of a U.S. ban on diesel exports, at least for now.
Crude oil fell significantly on Friday to test support, as the US employment numbers came out much weaker than anticipated.
It comes after Reuters reported that EU nations were discussing a proposal to release diesel reserves following pressure from the Trump administration.
Traders are weighing recovering Middle East exports against renewed shipping risks and a larger U.S. military buildup in the region.
Oil edged higher amid rising Middle East tensions that could lead to supply disruptions.
The 10-year U.S. Treasury yield briefly reached 5.34%, its highest level since 2002, before retreating a bit.
The benchmark contracts traded lower initially before rebounding as risks around regional shipping and the U.S.-Iran conflict continue to weigh.
Oil holds its gains as traders weigh the recovery in Middle East crude flows. Hormuz shipments approach late-June highs, while President Donald Trump says oil flows through the strait have returned to historic levels.
Worries over supply disruptions eased after Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu. Traders continue to keep a close eye on developments in the Middle East amid concerns that a lasting resolution to the Iran conflict may be delayed.
Oil prices edged lower in early Asian trade on signs of rising crude exports from the Middle East.
Heating oil households will pay an average of nearly $2,300 between mid-November and mid-March, the National Energy Assistance Directors Association projected in mid-September. That represents a 31.
Crude oil flows through the Strait of Hormuz have recovered to prewar levels, according to data provided by Kpler. But the rebound is uneven as refined product shipments from the Middle East remain constrained.