Oil Edges Up With OPEC+ Considering Delay of April Output Hikes
Oil crept higher in a volatile session as OPEC+ considers pushing back a series of monthly supply increases that were due to start in April.
Brent futures added 0.5% in London. Global oil markets remain too fragile to revive production now, a delegate of the group said. A decision is yet to be made and the group is split on how to proceed, said another.
Earlier, Iraq’s oil minister said exports from the semi-autonomous Kurdistan region could resume within a week. That could mean the return of more than 300,000 barrels a day of oil to the market.
At the same time, Kazakhstan’s primary oil export pipeline was operating at a reduced rate after an attack by drones, the facility’s operator said. The conduit was due to ship about 1.6 million barrels a day this month and next.
Some corners of the oil market have been tentatively flashing signs of weakness. West Texas Intermediate’s nearest futures flipped slightly into a bearish structure known as contango in recent days, which signals oversupply. Refiners are entering a period of maintenance, bolstering the chance of inventory builds at a key storage hub. Later contracts remain in a bullish pattern, though.
All the while traders are left subjected to the headline risks of President Donald Trump’s second term. While he’s already pressed OPEC+ to bring down prices and threatened tariffs on a host of global trade partners, much of the market’s attention at the moment is on his push for an end to the war in Ukraine, raising the prospect of smoother flows from Russia’s heavily sanctioned oil industry.
Trading could be thin later on Monday due to the Presidents’ Day holiday in the US.
Brent for April settlement edged 0.4% higher to $75.06 a barrel at 10:30 a.m. in London. WTI for March delivery traded at $71.07 a barrel.
There will be no settlement on Monday due to the US holiday, and transactions will be booked Tuesday.
Source: Bloomberg
