Oil prices edged higher during Friday's Asian trade, with both major benchmarks on track for their steepest weekly rise in three months after Russia announced fresh curbs on fuel exports following Ukrainian strikes on its energy infrastructure.
By 2:40 pm AEST (4:40 am GMT), Brent crude futures gained 16 cents, or 0.2%, to trade at US$68.74 a barrel, while West Texas Intermediate added 24 cents, or 0.4%, to $65.22.
Both contracts have risen more than 4% this week, their biggest weekly gain since mid-June.
Russian Deputy Prime Minister Alexander Novak confirmed on Thursday that Moscow would impose a partial ban on diesel exports through year-end while extending an existing prohibition on gasoline shipments.
The recent Ukrainian attacks have strained refining capacity, leaving some Russian regions facing shortages of fuel and pushing Moscow closer to cutting crude production.
The upward momentum was also supported by a surprise drop in U.S. crude inventories, which, combined with the Russian measures, drove prices to their highest levels since 1 August earlier this week.
However, gains were tempered by signs of resilience in the U.S. economy. Revised data from the Commerce Department showed gross domestic product grew at an annualised rate of 3.8% in the second quarter, the strongest pace in nearly two years.
The robust performance has clouded expectations for further Federal Reserve rate cuts, even after last week’s 25 basis-point reduction, its first since December.
Adding further pressure, the Kurdistan Regional Government announced it would resume oil exports within 48 hours, easing supply concerns and limiting the rally.
