Oil prices rose slightly on Friday, on track for their fastest growth since early June, as attacks on Russian energy infrastructure forced Moscow to curb fuel exports and virtually cut oil production, Reuters reports, writes UNN.
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By 04:54 GMT (07:54 Kyiv time), Brent crude futures rose 13 cents, or 0.2%, to $69.55 a barrel, while US West Texas Intermediate (WTI) crude futures rose 22 cents, or 0.3%, to $65.20 a barrel.
Both benchmark grades jumped more than 4% this week, their biggest gain since the week ended June 13.
"The rise was driven by ongoing Ukrainian drone strikes on Russian oil infrastructure, NATO's warning to Russia of its readiness to respond to future violations of its airspace, and Russia's decision to suspend exports of key fuels," said IG analyst Tony Sycamore.
Russian Deputy Prime Minister Alexander Novak said on Thursday that the country would impose a partial ban on diesel fuel exports until the end of the year and extend the existing ban on gasoline exports.
The reduction in oil refining capacity prompted Moscow to cut oil production. Several Russian regions faced shortages of certain types of fuel.
NATO's warning of its readiness to respond to further violations of its airspace has heightened tensions caused by the Russian-Ukrainian war and increased the likelihood of additional sanctions against the Russian oil industry, said ANZ analyst Daniel Hynes.
Both benchmark oil grades reached their highest levels since August 1 this week, driven by an unexpected drop in weekly US oil inventories, as well as attacks on Russian energy infrastructure.
Some slowdown in economic growth was recorded in the US in the last quarter, which amounted to an upwardly revised 3.8% on an annualized basis.
Stronger-than-expected economic data may force the Fed to be more cautious about cutting interest rates. Last week, the US central bank cut rates by 25 basis points, the first cut since December, and signaled further rate cuts.
The Kurdistan regional government's announcement on Thursday that it would resume oil exports within 48 hours also put pressure on prices.
"Geopolitical tensions offset previous losses after a historic agreement was reached to resume exports from Iraqi Kurdistan, which could lead to an increase in global oil supply of up to 500 kb/d," said Hynes of ANZ.