(RTTNews) – Crude oil advanced on Friday as Russia restricted fuel exports by introducing a partial ban on diesel exports until the end of 2025 following a series of Ukrainian drone attacks on Russian refineries.
WTI Crude Oil for November delivery was last seen trading up by $0.59 (or 0.91%) at $65.57 per barrel.
Intensified Ukrainian drone attacks on Russian oil refineries and energy infrastructures have now materialized into supply disruptions, with Russia curbing fuel exports. Several Russian regions face shortages of certain grades of fuel due to the drop in refining capacity.
Ukrainian President Volodymyr Zelenskyy has stated that US President Donald Trump supported Ukraine’s retaliatory attacks on Russia’s energy infrastructure that have pounded Russian refineries. Notably, the two leaders met in New York on September 23 on the sidelines of the UN General Assembly meeting.
Yesterday, Russian Deputy Prime Minister Alexander Novak stated that the country will introduce a partial ban on diesel exports until the end of 2025 and extend an existing ban on gasoline exports.
After calling on NATO nations to stop buying Russian oil, yesterday Trump urged Turkish President Recep Tayyip Erdogan to stop buying Russian oil as he claimed Turkey’s continued imports from Russia were undermining global pressure on the country.
Crude oil exports to Turkey from Iraq’s semi-autonomous Kurdistan region are scheduled to restart on Saturday.
Iraq, Kurdistan, and eight international oil companies in Kurdistan have formally agreed to re-open Kirkuk-Ceyhan pipeline which will allow around 190,000 barrels per day of crude to flow.
OPEC+ recently agreed to increase their production to 1.65 million bpd in October. However, the alliance has been pumping around 500,000 bpd below their target, neutralizing fears of oversupply and helping oil prices on the upside.
For the period of April to August, some of its member nations compensated for overproduction, while some had capacity issues.
Traders were expecting further lowering of interest rates post last week’s rate cut by the US Federal Reserve. However, expectations have watered down after yesterday’s strong economic and jobs data from the US.
Today, the US Commerce Department data revealed that the Personal Consumption Expenditures Price Index – which is the Fed’s preferred inflation measure – rose 0.3% last month, matching market expectations.
In his speech at the UN General Assembly today, Israeli Prime Minister Benjamin Netanyahu maintained his stance on continuing military action against Hamas in Gaza.
In parallel, Trump stated at the White House that there may soon be a deal in Gaza.
Analysts feel that the heating up or cooling down of geopolitical tensions could direct the price of oil in the coming days.
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