Global oil prices ticked upward on Friday, ending the week with their steepest rise since early June. The surge came as Ukraine intensified drone strikes on Russian oil facilities, forcing Moscow to curb exports.
Brent futures added 15 cents to $69.57 a barrel in early trading. U.S. West Texas Intermediate gained 23 cents to $65.21. Both contracts jumped over 4% this week, their largest weekly climb in more than three months.
“Gains were supported by ongoing Ukrainian drone strikes targeting Russian oil infrastructure, NATO’s warning to Russia, and Russia’s move to halt key fuel exports,” said IG analyst Tony Sycamore.
Russia Restricts Fuel Exports
Deputy Prime Minister Alexander Novak announced that diesel exports would be partially banned until year-end, while a gasoline export ban would continue.
Russian refineries are operating under strain, and some regions are already facing shortages.
The fall in refining capacity has pushed Moscow close to cutting crude output. This raises concerns for global supply at a time when inventories are already under pressure. Both Brent and WTI hit their highest levels since August 1.
U.S. Data, Kurdistan Oil Add Pressure
A surprise drop in U.S. crude stocks also lifted prices earlier in the week. But strong U.S. GDP growth, revised upward to 3.8%, weighed on the rally by dampening hopes for faster interest rate cuts.
The Federal Reserve trimmed rates last week for the first time since December but may now slow future moves.
Meanwhile, the Kurdistan Regional Government announced it would restart exports within 48 hours, adding more barrels to global supply.
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