Oil Prices Surge Near $69 over Growing Supply Risks

Oil Prices Surge Near $69 over Growing Supply Risks

Oil prices climbed on Friday amidst Moscow plan to restrict export after Ukraine attach on Russian critical energy infrastructure raised supply concerns.

Brent crude was trading at $68.76 per barrel up 4% from the previous close of $66.12. US benchmark West Texas Intermediate (WTI) increased by 0.01% to $65.08 from $65.07 in the prior session.

Ukraine damaged several Russian refining operations as Kyiv intensifies its attacks on the country’s energy infrastructure, which appear to be causing fuel shortages and price increases.

The Salavat petrochemical complex, one of Russia’s largest and located in the Bashkortostan region, was attacked by Ukrainian drones early on September 24, as well as strikes on Russian oil distribution facilities in the Bryansk and Samara regions.

Regional Governor Radiy Khabirov said Ukrainian drones targeted Salavat, controlled by Russian energy giant Gazprom. Amid the wave of attacks by Ukraine, Russia has seen growing shortages of some fuel grades due to reduced refining capacity.

Russian Deputy Prime Minister Aleksandr Novak said the government plans to extend its gasoline export ban until the end of the year and introduce a ban on diesel fuel exports for non-producers over the same period due to persistent shortages in the domestic market, international media reported.

Russia had temporarily banned gasoline exports from July 28 to August 31 after prices hit record levels, yet the upward trend continued.

Gasoline costs have faced seasonal pressure as refineries came under drone attacks and demand grew, particularly from the agricultural sector. Russia, one of the world’s largest energy exporters, produces over 40 million tons of gasoline annually.

Meanwhile, a drop in US crude inventories also supported prices, reinforcing demand expectations.

US Energy Information Administration (EIA) data showed commercial crude stocks fell by about 600,000 barrels last week to 414.8 million barrels, against a forecast increase of 800,000 barrels.

On the supply side, KRG Prime Minister Masrour Barzani announced that the region’s oil wells were reopened to international markets under an agreement with oil producers, Iraq’s Oil Ministry and the state-owned SOMO.

The KRG’s Ministry of Natural Resources said flows would restart within 48 hours, easing supply concerns and tempering upward pressure on prices. #Oil Prices Surge Near $69 over Growing Supply Risks Equities Investors Gain N279bn as Oando, GTCO Rally