Oil prices rose on Monday, September 25, as investors focused on expectations of supply shortages after Moscow issued a temporary ban on fuel exports amid continuing concerns about raising interest rates again, which could weaken demand.
Brent crude futures rose 48 cents, or 0.5%, to $93.75 a barrel by 01:10 GMT, after falling 3 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%.
Analysts' opinions
Tony Sycamore, an analyst at IG Markets, said that crude oil prices began 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 US Federal Reserve’s strict message that interest rates will remain high for a longer period.
Both contracts ended a 3-week series of gains and declined last week after the US Federal Reserve’s recent decision led to confusion in the global financial sectors and raised concerns about demand for oil.
Oil in the previous weeks
Prices rose by more than 10% 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.
