Oil prices rose on Friday in Asian trading, amid fears that a Russian ban on fuel exports could reduce global oil supplies, and these concerns overcame concern that another possible increase in interest rates in the United States in the fourth quarter of the year could negatively affect fuel demand.
Brent crude futures rose 21 cents, or 0.2%, to $93.51 a barrel in Asian markets, while U.S. West Texas Intermediate crude futures gained 23 cents, or 0.3%, to $89.86.
Both benchmarks are heading for a slight weekly decline after rising more than 10% over the past three weeks, amid concerns about global supply shortages as the OPEC Plus alliance continues to cut production.
"Trading remained volatile, amid mixed effects of supply concerns reinforced by Russia's ban on fuel exports, and fears of slowing demand due to tightening monetary policies in the United States and Europe," said Fujitome Securities analyst Toshitaka Tazawa.
On Thursday, the Russian government announced a temporary ban with immediate effect on the export of gasoline and diesel to all countries except 4 former Soviet countries with the aim of stabilizing the domestic fuel market.
The ban, which will force buyers of Russian fuel to look elsewhere, caused heating oil futures to rise about 5 percent on Thursday.
On Wednesday, the Federal Reserve maintained interest rates, but stuck to its stance on tightening monetary policy and predicted a quarter-point increase before the end of the year.
This has led to growing concerns that higher interest rates could dampen economic growth and fuel demand, while the US dollar has risen to its highest level since early March, and the dollar's rise will make oil and other commodities more expensive for buyers of other currencies.
$100 barrier
On the fifth of this month, Saudi Arabia and Russia announced the extension of a voluntary reduction in their oil production by 1.3 million barrels per day, to extend until the end of 2023 instead of this September.
These cuts pushed prices above $90 a barrel at the beginning of the month and then above $95 5 days ago, at a time when research institutions began talking about $100 levels by the last quarter of 2023.
Bloomberg Economics says in a recent report that its analysis assumes that most of the rise in oil prices stems from supply constraints, and was added to a rise in demand as the winter season approaches.
Meanwhile, Chevron Energy CEO Mike Wirth says he believes oil will soon exceed $100 a barrel amid shrinking supplies and falling inventories.
Oil demand is expected to reach a record 102.2 million barrels per day (bpd) this year, up 2 percent from last year, according to the International Energy Agency.
Diesel shortage crisis
Globally, diesel prices have been rising for several months, amid a shortage of refining and production, and with an impending seasonal increase in demand for diesel for heating.
Demand for diesel in both Europe and the United States usually rises in the winter, as it is considered an alternative to natural gas for heating, and a substitute for gas in any shortage in the productive sectors.
This crisis has pushed towards an increase in demand for light crude, which is better for diesel production, as the price of light crude exceeded in a few hours last Friday the level of $ 100.