Brent prices posted limited gains of 0.13% during the week ending Sept. 22 over tight global supply concerns triggered by OPEC+ supply cuts and Russia's decision to ban exports of some oil products, while demand concerns from the US Fed rate hike capped further price upticks.
International benchmark Brent crude traded at $94.06 per barrel at 3.44 p.m. (1244 GMT) on Friday, increasing by around 0.14% relative to the closing price of $93.93 a barrel on Friday last week.
The American benchmark West Texas Intermediate (WTI) declined while trading at $90.44 a barrel, a 0.36% fall over last Friday's session, which finished at $90.77 a barrel.
On Monday, Brent traded at 10-month highs as markets grappled with tight supply fears triggered by Saudi Arabia and Russia’s output cuts, while greater optimism about a Chinese economic revival boosted prices.
Brent reached its highest level at around $95 a barrel since last November on supply concerns after Saudi Arabia and Russia, the two biggest producers in the OPEC+ group, extended curbs by 1.3 million barrels per day (bpd) until the end of the year.
The International Energy Agency (IEA) predicted that the loss of OPEC+ production, led by Saudi Arabia, would drive a sizable supply shortfall through the fourth quarter of this year, although alternative supplies outside the OPEC+ alliance have so far offset the output curbs of OPEC+ producers.
However, on Wednesday, investors profited from 10-month-high prices due to uncertainties ahead of the US Federal Reserve (Fed) meeting, increasing demand woes, and supporting price downturns.
Later on Wednesday, the US Fed held its key interest rate steady and forecast fewer cuts next year, further fanning demand concerns and leading to a 1% decline in oil prices.
Oil prices rebounded on Friday, clawing back some earlier losses over fresh supply concerns after Russia banned the export of gasoline and diesel, while persistent demand headwinds after the US Fed rate hike decision capped further price upticks.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr