Oil prices experienced volatility on Thursday, with Brent futures for November delivery settling down 23 cents at $93.30 a barrel, and U.S. West Texas Intermediate crude (WTI) settling down 3 cents at $89.63.
Initially, prices dropped by $1 a barrel due to Western economic concerns but rebounded by $1 following Russia’s sudden ban on fuel exports to stabilise its domestic market, according to Reuters.
Russia’s export ban on gasoline and diesel, affecting all countries except four ex-Soviet states, led to a nearly 5% increase in heating oil futures.
The Federal Reserve’s hawkish stance, projecting a quarter-percentage-point interest rate hike by year-end, coupled with a strong U.S. labor market and a surging U.S. dollar, weighed on oil prices.
Despite these factors, oil prices were supported by global supply concerns, including low U.S. crude stocks and ongoing production cuts by OPEC and its allies. Norway’s central bank also indicated a possible interest rate hike in December.
Overall, oil markets exhibited a mixed response amid various economic and geopolitical factors.