Oil Climbs As Russia Sanctions Tighten Supply

Oil rose in early Asian trade on Monday, Oct. 24, 2022, as expectations of tighter supplies globally ahead of European Union sanctions on Russian oil underpinned prices, Florence Tan reported for Reuters.

Photo Insert: A depot belonging to Russian oil giant Rosneft

Brent crude futures climbed 54 cents, or 0.6%, to $94.04 a barrel by 0125 GMT (9:25 a.m. in Manila) while US West Texas Intermediate crude was at $85.56 a barrel, up 51 cents, or 0.6%.

Brent posted a 2% gain last week on a weaker dollar and on hopes of easing COVID-19 restrictions in China that would allow demand at the world's No. 2 consumer to rebound.

Disruptions to global oil supplies are expected when the EU's ban on Russian imports goes into effect on Dec. 5.

The group also plans to block imports of Russian oil products in February. Sentiment is building within the Federal Reserve to possibly scale back the pace or size of future interest rate hikes even as it is poised to raise rates in early November.

A slowdown in Fed rate hikes could ease the US dollar's strength which has weighed on prices of commodities. A weaker dollar makes dollar-denominated commodities such as oil more affordable to holders of other currencies.

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