Oil Prices Continue to Rise, OPEC+ May Delay Supply Increase
Oil prices steadied after rising as OPEC+ delegates said the group was considering delaying a production recovery, and Ukrainian drones attacked crude pumping stations in Russia.
West Texas Intermediate was trading near $71 a barrel, while Brent crude settled above $75. The delegates said the cartel and its allies were considering delaying a series of monthly supply increases that were due to begin in April. Meanwhile, a Ukrainian strike has slowed exports through a key pipeline from Kazakhstan.
The delay in the 120,000-barrel-per-day increase would mark the fourth time the alliance has delayed plans to restart production that has been halted since 2022. However, Russian Deputy Prime Minister Alexander Novak said OPEC and its allies had not discussed any delays, according to Tass. Elsewhere, exports from Iraq’s semi-autonomous Kurdistan region could resume within a week, Iraqi Oil Minister Hayyan Abdul Ghani said. The pipeline, which runs from Iraq’s Kurdish region to the Turkish port of Ceyhan, was shut down in March 2023.
Crude has had a rocky start to the year, shedding all of its gains as U.S. President Donald Trump’s use of tariffs threatens to slow global growth and energy demand. Market gauges including time frames are also showing signs of weakness, and net-bullish positions on crude have been reduced.
Source: Bloomberg
