Oil Gains on OPEC+ Delay, Kazakh Exports Hit by Drone Attack
Brent futures climbed above $75 per barrel after OPEC+ weighs deferring output increases. Delegates report the alliance is considering postponing monthly supply hikes set to begin in April.
Meanwhile, a Ukrainian drone strike on a pumping station in Russia has disrupted crude exports from Kazakhstan through a major pipeline.
Traders closely monitor negotiations between US and Russian officials, which could lead to a meeting between Presidents Trump and Putin to discuss ending the Ukraine conflict. However, Ukraine's President Zelenskiy has stated that his country will not accept any agreements made "about us without us."
If OPEC+ delays its scheduled 120,000 barrel-per-day production increase, it would mark the fourth such deferral since 2022. However, Russian Deputy Prime Minister Alexander Novak denies that OPEC and allies have discussed any postponement, as reported by TASS.
"OPEC+ aims to keep prices above $70-$74 and is ready to sacrifice market share to maintain higher prices," said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management. "Reports of Ukraine's attack on the Russian pumping station further supported the market."
Elsewhere, Iraqi Oil Minister Hayyan Abdul Ghani expects exports from Iraq's semi-autonomous Kurdistan region to resume within a week. The pipeline connecting to the Turkish port of Ceyhan was halted in March 2023.
Despite an initial rise in January, crude oil has experienced volatility due to concerns over global growth and energy demand amid President Trump's tariffs. Weak time spreads and decreased bullish positions in crude also suggest market headwinds.