Oil rises toward US$94 as tightening market vies with hawkish U.S. Fed
BNN Bloomberg
Oil edged higher toward US$94 a barrel, capping a tumultuous week that saw the Federal Reserve flagging a further rise in U.S. interest rates this year and Russia ban diesel exports.
Brent futures were up 0.6 per cent, little changed from a week earlier. The Fed signaled borrowing costs will stay higher for longer, boosting the dollar and dimming the allure of commodities including crude. Technicals had also been indicating that oil's gains were overdone.
Still, there are plenty of signs of tightness in the physical market. Russia announced a temporary ban on diesel and gasoline exports on Thursday, lifting fuel prices. In addition, U.S. crude stockpiles posted another decline, and oil's backwardated timespreads point to strong competition for near-term supplies.
