Oil prices rise after Putin threatens to cut supplies

Oil prices rose on Wednesday on the back of Russian threats to withdraw from energy supply contracts, reversing losses incurred earlier in the session when they fell to their lowest levels since Russia’s invasion of Ukraine.

Brent crude futures rose 85 cents, or 0.92 percent, to $93.68 a barrel by 0931 GMT, after hitting their lowest level since February 18 at $91.20 earlier.

US West Texas Intermediate crude futures rose 80 cents, or 0.92 percent, to $87.68. Crude had fallen to a session low of $85.08, its weakest since January 26.

Oil prices rebounded after Russian President Vladimir Putin said on Wednesday that Moscow would stop sending its gas and oil shipments if a price cap on Russian energy supplies were imposed.

Analysts expect oil supplies to be already tight in the last quarter of the year.

A preliminary poll conducted by Reuters on Tuesday showed that US crude stocks are expected to decline for the fourth consecutive week, falling by an estimated 733,000 barrels in the week ending September 2.

Weekly US inventory data from the American Petroleum Institute and the Energy Information Administration will be released on Wednesday and Thursday, a day later than usual due to a public holiday on Monday.

Despite looming supply shortages, the Organization of the Petroleum Exporting Countries and its allies in the cartel known as OPEC+ decided to cut production targets by 100,000 barrels per day in October.