Oil Prices Climb Amidst Supply Uncertainties
Oil prices continue to rise this week, driven by uncertainties surrounding supply from Russia, Kazakhstan, and the OPEC+ alliance.
Brent crude surged for a third consecutive session, surpassing $76 per barrel. OPEC+ is reportedly considering delaying its planned monthly supply increases, a move that if implemented would mark the fourth delay.
The exclusion of Ukrainian President Volodymyr Zelenskiy from US-led negotiations on the Ukraine conflict has raised concerns about the potential delay of a peace agreement and the resumption of Russian crude exports.
The Group of Seven (G7) is contemplating tightening the price cap on Russian oil exports to limit funding for President Vladimir Putin's military campaign.
"Continued speculation over OPEC+ delaying production hikes and uncertainty over Russian oil flows due to G-7's consideration of a tighter price cap have pushed crude prices higher for a third consecutive day," said Ole Hansen, Head of Commodity Strategy at Saxo Bank.
Meanwhile, oil flows from Kazakhstan to the Black Sea are expected to drop by 30% during repairs to a key Russian pumping station targeted by Ukrainian drones. Russian Deputy Prime Minister Alexander Novak estimated the repairs will span several months.
Despite the ongoing uncertainties, Brent prices have traded within a relatively narrow range of under $4 per barrel this month, with implied volatility reaching its lowest level since July.
Elsewhere, former US President Donald Trump has indicated that Chevron Corp.'s continued crude exports from Venezuela are under review, highlighting lingering tensions that could potentially impact energy markets.