Oil prices rise 1% on supply concerns after price cap on Russian oil | Reuters

Oil prices rise 1% on supply concerns after price cap on Russian oil | Reuters

Oil prices rose more than 1% on Friday after Russia said it won't supply crude to countries that decide to impose a price cap on its oil.

Brent crude futures climbed $1.39, or 1.3%, to $105.25 a barrel by 12:10 p.m. ET (1410 GMT), while U.S. West Texas Intermediate crude (WTI) rose 90 cents, or 0.9%, to $97.03 a barrel.

Russian Central Bank Governor Elvira Nabiullina said crude and oil products will be redirected to countries which are ready to "cooperate" with Russia, adding that a cap would spur on global oil prices. read more

"Perceptions are growing that the U.S. and EU will implement price caps on Russian oil by year end," said Dennis Kissler, senior vice president of trading at BOK Financial.

"Past history shows that government-induced price caps on commodities are usually short lived and can result in exaggerated prices soon after," he added.