Sep 08, 2022 02:40AM ET
By: AnalysisWatch
Oil prices rose as much as $1 a barrel on Thursday after falling below key technical support levels in the previous session, as an energy spat between Europe and Russia focused investors' attention on how tight fuel supplies may be.
Brent crude futures had risen 63 cents, or 0.7 percent, to $88.63 per barrel by 0628 GMT, having closed at their lowest level since early February the previous session. Crude futures in the United States rose 70 cents, or 0.9 percent, to $82.64 per barrel.
Prices were supported by Russian President Vladimir Putin's threat to halt the country's oil and gas exports if European buyers impose price caps.
The European Union's proposed cap on Russian gas prices just hours later raised the risk of rationing in some of the world's richest countries this winter if Moscow carries out its threat. Russia's Gazprom has already halted flows from the Nord Stream 1 pipeline, cutting off a significant portion of supplies to Europe.
They noted that the potential impact of any agreement or renewal of an agreement between the West and Iran on Tehran's nuclear program would also be significant. A deal would mean the lifting of sanctions on Iranian oil exports.
Meanwhile, a number of central banks around the world are expected to launch a new round of interest rate hikes to fight inflation.
The European Central Bank is expected to raise interest rates significantly at its meeting later on Thursday. A meeting of the US Federal Reserve follows on September 21.