Oil Rises as Drone Strikes Caspian Pump Station, While Russia-Ukraine Peace Talks Loom
Oil prices strengthened on Monday as an attack on an oil pipeline pumping station in the Caspian Sea slowed flows from Kazakhstan, while investors monitored developments of a possible Moscow-Kiev ceasefire agreement that could ease sanctions and increase global supplies.
The dollar index , which hovered near a two-month low after weaker-than-expected U.S retail data for January, also boosted oil prices by making crude less expensive for non-U.S. buyers.
Brent crude futures settled at $75.22 a barrel, rising 48 cents. U.S. West Texas Intermediate crude rose 65 cents to $71.39 a barrel by 2:33 p.m. EST, and did not settle at its normal time due to the U.S. Presidents' Day holiday. The public holiday led to relatively muted trading volumes.
Crude prices received support after drones struck the Kropotkinskaya pipeline pumping station in Russia's southern Krasnodar region, reducing oil flows from Kazakhstan to world markets by Western producers, including Chevron (CVX.N), and Exxon Mobil (XOM.N), the Caspian Pipeline Consortium said on Monday.
The CPC, which is the station's operator, called the attack an act of terrorism, but did not specify that Ukraine had sent the drones. An official at Ukraine's security service, however, said Kyiv had hit the station and a nearby oil refinery using drones.
The strikes came as the administration of U.S. President Donald Trump and Russia prepare for initial talks in Saudi Arabia in the coming days.
Source : Reuters
