Moscow has banned exports of gasoline and diesel to stabilize the domestic fuel market
Global oil prices climbed higher on Friday as Russia’s ban on diesel and gasoline exports raised concerns about tightening supplies.
Brent futures had climbed above $94 per barrel by 11:30 GMT, while US West Texas Intermediate crude (WTI) gained roughly 1% to trade over $90 per barrel. Both benchmarks were expected to see an insignificant weekly drop after gaining over 10% in the previous three weeks.
On Thursday, the Russian government introduced a temporary ban on foreign sales of diesel and gasoline in order to stabilize the domestic fuel market.
According to the Kremlin, the measure does not apply to fuel supplied under inter-governmental agreements to members of the Moscow-led Eurasian Economic Union, which includes Belarus, Kazakhstan, Armenia, and Kyrgyzstan.
“Temporary restrictions will help saturate the fuel market, which in turn will reduce prices for consumers,” the government’s statement read.
According to the Russian Energy Ministry, the step will also prevent unauthorized “gray” exports of motor fuels.