Oil Steady on OPEC+ Policy
Oil prices steadied after rising as OPEC+ delegates said the group was considering delaying production recovery, and Ukrainian drones attacked crude pumping stations in Russia.
Brent crude was trading above $75 a barrel after a modest gain on Monday, while West Texas Intermediate was nearing $71. The cartel and its allies are considering delaying a series of monthly supply increases due to start in April, delegates said. Meanwhile, the Ukrainian attack has slowed exports through a major 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 have not discussed any delay, according to Tass. “The drone attack on Kazakhstan’s export pipeline in Russia has been a catalyst for some bearish sentiment to ease,” said Yeap Jun Rong, market strategist for IG Asia Pte. Market expectations for the supply outlook from OPEC and its allies including Russia will be the focus in the longer term, he said.
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 to the Turkish port of Ceyhan, was halted in March 2023.
Crude has had a tough 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
