(MENAFN) Global oil prices witnessed a significant uptick on Friday, fueled by concerns over tightening supplies in the wake of Russia's decision to ban the export of diesel and gasoline. Brent futures, a key international benchmark, surged beyond USD94 per barrel by 11:30 GMT, while US West Texas Intermediate crude (WTI) experienced a gain of approximately 1 percent, pushing it above USD90 per barrel. Notably, both of these benchmarks were poised to record a minor weekly decline, having previously surged by more than 10 percent over the course of the past three weeks.
The surge in oil prices follows Russia's recent move to implement a temporary ban on foreign sales of diesel and gasoline, aimed at stabilizing the domestic fuel market. This decision by the Russian government has triggered concerns within the global energy market, as it hints at potential disruptions in the supply chain for these vital petroleum products.
It's worth noting that, according to the Kremlin's statement, the ban does not encompass fuel deliveries made under inter-governmental agreements to member nations of the Moscow-led Eurasian Economic Union. This group includes Belarus, Kazakhstan, Armenia, and Kyrgyzstan, signifying that Russia's export restrictions will not apply to these countries, thereby ensuring their access to Russian fuel supplies.
The implications of this export ban extend beyond the immediate concerns of supply disruption, as it underscores the complex interplay between global energy markets and geopolitical decisions. The move by Russia adds another layer of volatility to an already intricate and fluctuating oil market, with potential consequences for both global energy prices and international relations.
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