Oil extends gains as Russia cuts fuel exports, NATO issues warning

September 26, 2025 (MLN): Oil prices climbed on Friday, heading for their sharpest increase since early June, as Ukraine’s strikes on Russia’s energy facilities prompted Moscow to limit fuel exports and consider significant reductions in crude production.

Brent crude futures went up by $0.20, or 0.29%, to $69.22 per barrel.

West Texas Intermediate (WTI) crude futures decreased by $0.11, or 0.17%, to $64.87 per barrel by [2:45 pm] PST.

 Both major oil benchmarks advanced more than 4% this week, marking their strongest gain since the week ending June 13.

According to IG analyst Tony Sycamore, the rally was fueled by continued Ukrainian drone strikes on Russian oil facilities, NATO’s warning that it is prepared to respond to any future Russian airspace violations, and Moscow’s decision to suspend critical fuel exports.

On Thursday, Russian Deputy Prime Minister Alexander Novak revealed that the country would impose a partial ban on diesel exports through the end of the year while extending its existing restrictions on gasoline exports.

With refining capacity under pressure, Russia is nearing the point of cutting crude production, while several of its regions are experiencing shortages of certain fuel grades.

This week, both benchmarks also touched their highest levels since August 1, supported by an unexpected decline in U.S. crude stockpiles alongside Ukraine’s strikes on Russian energy infrastructure.

However, some of the gains were tempered after the U.S. Commerce Department’s Bureau of Economic Analysis reported on Thursday that GDP grew at an annualized pace of 3.8% last quarter, higher than previously estimated.

Stronger economic growth could prompt the Federal Reserve to take a more cautious approach toward further rate cuts. The central bank reduced rates by 25 basis points last week, its first cut since December and had indicated additional cuts were likely.

Adding further pressure, the Kurdistan Regional Government announced on Thursday that oil exports would restart within 48 hours

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