Oil prices up over tight supply outlook

September 25, 2023, 9:31 pm

ISTANBUL – Oil prices rose on Monday as markets focused on a tighter supply outlook after Russia limited the export of gasoline and diesel.

International benchmark crude Brent traded at USD92.31 per barrel at 10.23 a.m. local time (0723 GMT), a 0.38 percent gain from the closing price of USD91.96 a barrel in the previous trading session on Friday.

The American benchmark West Texas Intermediate (WTI) traded at the same time at USD90.40 per barrel, up 0.41 percent from Friday’s close of USD90.03 per barrel.

The Russian government temporarily limited the export of diesel and gasoline on Thursday.

The government explained in a statement that the decision, which aims to stabilize fuel prices on the domestic market, "will help saturate the fuel market, which in turn will reduce prices for consumers."

Russia, one of the largest global oil producers, exports nearly 900,000 barrels per day (bpd) of diesel fuel and 100,000 bpd of gasoline.

Although Russia ships less diesel and gasoline than it does crude oil, the export embargo before the winter and ongoing supply concerns have heightened market jitters.

This comes amid tight oil supply, with Saudi Arabia and Russia extending their production curbs until the end of this year.

The prospect of additional stimulus measures in China, the world's top oil importer, also helps to support oil prices.

Further pressuring prices, the number of oil rigs in the US fell to the lowest level since February last year, according to the latest data released by Baker Hughes on Friday. (Anadolu)