Oil prices edged up slightly on Friday and are on track for their fastest gain since early June as Ukraine’s attacks on Russia’s energy infrastructure curtail Moscow’s fuel exports and crude oil production.
Brent futures rose 13 cents, or 0.2%, to $69.55 a barrel by 04:54 GMT, while WTI crude futures rose 22 cents, or 0.3%, to $65.20 a barrel.
Both indices rose more than 4% this week, their biggest gains since the week ended June 13.
The gains were supported by Ukraine’s drone strikes targeting Russian oil infrastructure and NATO’s warning that it is prepared to respond to any Russian violations of its member states’ airspace.
Russian Deputy Prime Minister Alexander Novak announced on Thursday that the country will impose a partial ban on diesel exports by the end of the year and extend the existing ban on gasoline exports.
The decline in oil refining capacity has forced Moscow to reduce crude oil production. Many regions in Russia are facing shortages of certain fuels.
Both indices reached their highest levels since August 1 this week. This increase was driven by a surprise drop in US weekly crude oil inventories and Ukraine’s attacks on Russia’s energy infrastructure.
The Commerce Department’s Bureau of Economic Analysis reported that the US gross domestic product was revised upwards by 3.8% year-over-year last quarter.
The stronger-than-expected economic data could make the US Federal Reserve more cautious about cutting interest rates, which it cut interest rates by 25 basis points last week for the first time since December, and hinted at further cuts.
The Northern Iraqi Administration’s announcement on Thursday that oil exports would resume within 48 hours also weighed on prices.
Geopolitical tensions reversed earlier losses after a historic deal was reached, allowing northern Iraq to resume exports via Türkiye that could return up to 500,000 barrels a day to the global market.