Oil Prices Rise Amid OPEC+ Delay and Russian Supply Uncertainty
Oil prices continued their upward trajectory this week, supported by the potential postponement of OPEC+ production increases and ongoing concerns over supply from Russia.
Brent Crude and WTI
Brent crude futures traded near $76 per barrel, extending gains from a 1.5% increase over the first two trading days of the week. West Texas Intermediate (WTI) futures traded below $72 per barrel.
OPEC+ Supply Increases
OPEC+ is considering delaying a series of monthly supply increases scheduled to begin in April. If implemented, this would mark the fourth postponement. Top officials from the US and Russia recently met in Riyadh for talks on the Ukraine conflict, but the absence of Ukrainian President Volodymyr Zelensky raised concerns in Europe and could hamper progress towards an agreement.
Russian Oil Exports
The Group of Seven (G7) is exploring measures to tighten the oil price cap on Russian exports. This move could further disrupt global supply and support oil prices.
Other Factors
* Oil flows from Kazakhstan to the Black Sea may decline by 30% during repairs on a Russian pumping station damaged by Ukrainian attacks.
* Brent crude has traded within a narrow range of $4 per barrel this month, with implied volatility falling to near its lowest level since July.
* US President Donald Trump is reviewing Chevron's ability to continue exporting crude from Venezuela, potentially exacerbating tensions between the two countries and impacting energy markets.