NEW YORK: Oil prices were slightly higher in choppy trading on Thursday, rising as much as $1 a barrel after a Russian ban on fuel exports snapped focus away from Western economic headwinds that had dropped prices $1 a barrel early in the session.
Gains were capped as global central banks signalled continuing tight policy.
Brent futures for November delivery rose 6 cents, or 0.7%, to $93.59 by 11:46 a.m. EDT (1646 GMT). US West Texas Intermediate crude (WTI) climbed 36 cents, or 0.4%, to $90.02. Both benchmarks had both risen and fallen more than $1 earlier on Thursday.
Russia temporarily banned exports of gasoline and diesel to all countries outside a circle of four ex-Soviet states with immediate effect in order to stabilize the domestic fuel market, the government said on Thursday.
The shortfall will force Russia’s fuel buyers to shop elsewhere, prompting refiners to process more of a dwindling crude supply to meet that demand, said Tamas Varga of oil broker PVM.
“The Russian news came out and tension from the longer-term outlook immediately shifted back to supply,” said Vargas, referencing the US Federal Reserve’s hawkish signals.
The Fed on Wednesday maintained interest rates, but stiffened its hawkish stance, projecting a quarter-percentage-point increase to 5.50-5.75% by year-end.
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