SINGAPORE- Oil prices rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand.
Brent crude futures climbed 48 cents, or 0.5 percent , to $93.75 a barrel after settling 3 cents lower on Friday.
US West Texas Intermediate crude futures extended gains for a second straight session, trading at $90.53 a barrel, up 50 cents, or 0.6 percent .
“Crude oil prices have started the week on the front foot, as the market continues to digest Russia’s temporary ban on diesel and gasoline exports, into an already tight market, offset with the Fed’s hawkish message that rates will stay higher for longer,” IG Markets analyst Tony Sycamore said.
Both contracts snapped a three-week winning streak to fall last week after a hawkish Federal Reserve stance rattled global financial sectors and raised oil demand concerns.
Prices had rallied more than 10 percent in the previous three weeks on forecasts of a wide crude supply deficit in the fourth quarter after Saudi Arabia and Russia extended additional supply cuts to the end of the year.
Last week, Moscow temporarily banned gasoline and diesel exports to most countries in order to stabilize the domestic market, fanning concerns of low products supply especially for heating oil as the northern hemisphere heads into winter. – Reuters
