Oil prices recovered on Thursday after Russia announced curbs on gasoline and diesel exports, rekindling market fears of supply shortages for both crude and derivatives, AFP reported.

Brent North Sea crude for November delivery was up 0.42% at $93.92 by 15:40 GMT.

Its US counterpart, a barrel of West Texas Intermediate (WTI) for delivery in the same month, which is being used as a benchmark contract for the first time, rose 0.70% to $90.29.

“Oil prices were poised for further declines, but Russia’s sudden decision to impose (restrictions on) gasoline and diesel exports pushed oil prices higher,” commented Edward Moya, an analyst at Oanda.

Galloping price growth in Russia

On Thursday, the Russian government imposed restrictions on gasoline and diesel exports due to soaring prices that are increasingly affecting Russians’ incomes.

“The government introduced temporary restrictions (…) to stabilize the domestic market,” the official statement of the Russian government says, without specifying for what period.

After getting used to the 300,000 bpd cut in Russian crude oil exports being extended until the end of the year, the market “now has to deal with the uncertainty of the duration of this temporary ban” on petroleum products, Moya said.

“Russian diesel exports are around 1 million barrels per day, or 16% of seaborne shipments, while the share of gasoline is much smaller, around 3%,” Giovanni Staunovo, an analyst at UBS, told AFP.

“A stronger dollar is limiting the current rally in oil prices as it comes with a worsening outlook for Europe,” said Edward Moya.

On Wednesday, the Fed left interest rates at their current level in the range of 5.25% to 5.50%, but is considering one more hike before the end of 2023.