Oil prices recovered from $1 down to $1 up in trade on Thursday after a Russian embargo on fuel exports shifted attention away from the slowdown in the western economy and back to the restricted supply of crude through the end of 2023.

Brent future edged up by 1.09% to $94.55 per barrel while WTI climbed by 1.42% to $90.93 per barrel.

In order to stabilize the domestic fuel market, Russia temporarily restricted gasoline and diesel exports to any nations outside of a circle of four former Soviet states, the government announced on Thursday.

According to Tamas Varga of oil broker PVM, the shortage will force Russia's fuel consumers to look elsewhere, forcing refineries to process more of a declining crude supply to satisfy that demand.

The Fed kept interest rates steady on Wednesday but shifted to a more hawkish tone, forecasting a quarter-point increase to 5.50–5.75% by year's end.

That may slow down economic expansion and total fuel demand, and it also caused the U.S. dollar to soar to its highest level since early March, raising the price of oil and other commodities for consumers using foreign currencies.

The actions of central banks in other countries also hinted at possible pressure on oil prices. After years of rate increases, the Bank of England followed the Fed's lead on Thursday and maintained interest rates steady, but it added that it was not taking the recent drop in inflation for granted.