“Crude oil prices started the week on a high note, as the market continues to digest Russia’s temporary ban on diesel and gasoline exports, in an already tight market, offset by the Fed’s hawkish message that interest rates will remain high for longer,” said Tony Sycamore, analyst at IG Markets.
Price action
Brent crude futures rose 48 cents, or 0.5 percent, to $93.75 a barrel by 0110 GMT, after falling three cents upon settlement on Friday.
US West Texas Intermediate crude futures continued their gains for the second session in a row, trading at $90.53 per barrel, up 50 cents, or 0.6 percent.
Both contracts ended a three-week winning streak and fell last week, after the Federal Reserve’s latest decision led to confusion in the global financial sectors and raised concerns about demand for oil.
Prices rose by more than 10 percent in the previous three weeks due to expectations of a wide deficit in crude supplies in the fourth quarter after Saudi Arabia and Russia extended additional supply cuts until the end of the year.
Last week, Moscow temporarily banned gasoline and diesel exports to most countries in order to stabilize the domestic market, raising fears of a decline in supplies of products, especially heating oil, with the approach of winter in the Northern Hemisphere.
In the United States, the number of operating oil rigs fell by eight to 507 last week, the lowest level since February 2022, despite rising prices, a weekly report issued by Baker Hughes showed on Friday evening.
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