Oil steadied as broad, risk-off sentiment eroded gains boosted by Russia’s ban on gasoline and diesel exports, further tightening an already stressed global fuel market.
The measures, designed to stabilize Russia’s domestic fuel prices, will remove supplies from the global diesel market at a time when refineries are struggling to meet demand. So far this year, Russia has been the world’s leading maritime fuel exporter.
West Texas Intermediate settled below $90 a barrel, having earlier recovered near $91. In broader markets, investors fled risky assets after the Federal Reserve signaled that borrowing costs were likely to remain higher for longer.
Russia’s export ban comes after its fuel shipments were already cut by a third this month, which had helped push Europe’s diesel benchmark to near $130 a barrel this month.
Crude oil recovered strongly this quarter as Saudi Arabia and Russia extended their production cuts through the end of the year. An upbeat outlook in the world’s two largest economies, the US and China, has also boosted prices and spurred commentators at Chevron Corp. at Goldman Sachs Group Inc. to raise the possibility of oil moving up to $100 a barrel.
Prices:
- WTI for November delivery fell 3 cents to settle at $89.63 a barrel in New York
- Brent for November settlement fell 23 cents to close at $93.30
