Oil up as Russia announces ban on fuel, gasoline exports

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ANKARA – Oil prices rebounded on Friday, clawing back some earlier losses over fresh supply concerns after Russia banned the export of gasoline and diesel, while persistent demand headwinds after the US Fed rate hike decision limited further price upticks, reported Anadolu.

International benchmark crude Brent traded at US$90.25 per barrel at 09.30 am local time (0630 GMT), a 0.69 per cent gain from the closing price of US$89.63 a barrel in the previous trading session on Thursday.


The American benchmark West Texas Intermediate (WTI) traded at the same time at US$93.76 per barrel, up 0.49 per cent from the previous session’s close of US$93.30 per barrel.

Both benchmarks dropped from their 10-month high levels as a result of the US Fed’s decision to keep interest rates constant while strengthening its hawkish stance, with another rate increase predicted by the end of the year.

Supply cuts in Saudi Arabia and Russia of around 1.3 million barrels per day (bpd) until the end of the year boosted prices that hovered around US$95 a barrel.

The Russian government on Thursday limited the export of gasoline and diesel fuel to balance the domestic market, adding to supply concerns and supporting higher prices.

The government explained in a statement that the decision, which aims to stabilise fuel prices in the domestic market, “will help saturate the fuel market, which in turn will reduce prices for consumers.”

Deputy Prime Minister Alexander Novak attributed the hike in wholesale fuel prices to an increase in prices for petroleum products on global markets, as well as to the depreciation of the ruble against the dollar. – Bernama