© Reuters. FILE PHOTO: Crude oil storage tanks are seen from above on the Cushing oil hub, showing to expire of area to comprise a historic supply glut that has hammered prices, in Cushing, Oklahoma, March 24, 2016. REUTERS/Nick Oxford//File Photo
By Yuka Obayashi
TOKYO (Reuters) – Oil prices rose on Friday as concerns {that a} Russian ban on gas exports may tighten international oil supply outweighed fears that additional doable U.S. rate of interest hikes may dent gas demand, however they have been nonetheless headed for a weekly loss in 4.
futures for climbed 21 cents, or 0.2%, to $93.51 a barrel by 0103 GMT, whereas U.S. West Texas Intermediate crude (WTI) futures gained 23 cents, or 0.3%, to $89.86.
Both benchmarks have been on monitor for a small weekly drop after gaining greater than 10% within the earlier three weeks amid concerns about tight international supply as the Organization of the Petroleum Exporting Countries and allies (OPEC+) keep manufacturing cuts.
“Trading remained choppy amid a tug-of-war between supply fears that were reinforced by a Russian ban on fuel exports and worries over slower demand due to tighter monetary policies in the United States and Europe,” stated Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.
“Going forward, investors will focus on whether the OPEC+ production cuts are being implemented as promised and whether the rise in interest rates will reduce demand,” he stated, predicting WTI to commerce in a variety of round $90-$95.
Russia briefly banned exports of gasoline and diesel to all nations exterior a circle of 4 ex-Soviet states with speedy impact to stabilise the home gas market, the federal government stated on Thursday.
The shortfall, which can pressure Russia’s gas patrons to buy elsewhere, brought on futures Hoc1 to rise by practically 5% on Thursday.
The U.S. Federal Reserve on Wednesday maintained rates of interest, however stiffened its hawkish stance, projecting a quarter-percentage-point improve to five.50-5.75% by year-end.
That buoyed fears that greater charges may dampen financial development and gas demand whereas boosting the U.S. greenback to its highest since early March, making oil and different commodities dearer for patrons utilizing different currencies.
The Bank of England mirrored the Fed and held rates of interest on Thursday after a future of hikes, however stated it was not taking a latest fall in inflation without any consideration.
