Oil prices rose on Monday as investors focused on expectations of tight supplies, after Russia issued a temporary ban on fuel exports amid continuing concern that raising interest rates again could weaken demand.
Brent crude futures gained 69 cents, or 0.7 percent, to 93.96 dollars a barrel by 07:00 GMT after falling 3 cents at settlement on Friday.
US WTI futures continued their gains for the second consecutive session, trading at 90.57 dollars a barrel, up 54 cents, or 0.6 percent.
Tony Sycamore, an analyst at IHS Global Insight, said.”Crude oil prices started the week in full swing, as the market continues to absorb the temporary Russian ban on diesel and gasoline exports, in an already scarce market, offset by the confirmation message from the Federal Reserve that interest rates will remain high for a longer period,”G markets said.
Both contracts fell last week to end a three-week winning streak after the Federal Reserve’s recent stance confused global financial sectors and raised concerns about oil demand.
Prices have risen by more than 10 percent in the past three weeks thanks to expectations of a wide deficit in crude supplies in the last 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 decrease in the supply of products, especially heating oil, as winter approaches in the northern hemisphere.
In America, 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 released by Baker Hughes showed on Friday.
