Oil rises as investors focus on tight supplies

Oil prices rose on Monday as investors focused on expectations of tighter supplies after Moscow issued a temporary ban on fuel exports amid continuing concerns that another interest rate hike could dampen demand.

Brent crude futures increased 69 cents, or 0.7 percent, to $93.96 a barrel by 0646 GMT, after falling three cents upon settlement on Friday.

US West Texas Intermediate crude futures continued their gains for the second session in a row, trading at $90.57 per barrel, up 54 cents, or 0.6 percent.

Both contracts fell last week, ending a three-week winning streak after the Federal Reserve’s latest stance roiled global financial sectors and raised concerns about oil demand.

Prices rose by more than 10 percent in the previous three weeks thanks to expectations of a wide deficit in crude supplies in the fourth quarter after Saudi Arabia and Russia extended additional supply cuts until the end of the year.

Last week, Moscow temporarily banned gasoline and diesel exports to most countries in order to stabilize the domestic market, raising fears of a decline in supplies of products, especially heating oil, with the approach of winter in the Northern Hemisphere.

In the United States, the number of operating oil rigs fell by eight to 507 last week, the lowest level since February 2022, despite rising prices, a weekly report issued by Baker Hughes showed on Friday.