Oil gains on US, Russia supply worries; market seeks Ukraine talks clarity
Oil prices edged up on Wednesday amid worries of oil supply disruptions in the U.S. and Russia, and as markets awaited clarity on the Ukraine peace talks.
Brent crude futures were up 41 cents, or 0.5%, at $76.25 a barrel at 0720 GMT, and possibly set for a third day of gains.
U.S. West Texas Intermediate crude futures for March rose 44 cents, or 0.6%, to $72.29, up 2.2% from the close on Friday after not settling on Monday because of the Presidents' Day public holiday. The March contract expires on Thursday and the more active April contract gained 42 cents, or 0.6%, to $72.25.
Russia said oil flows through the Caspian Pipeline Consortium (CPC), a major route for crude exports from Kazakhstan, were reduced by 30%-40% on Tuesday after a Ukrainian drone attack on a pumping station. A 30% cut would equate to the loss of 380,000 barrels per day of supply to the market, according to Reuters calculations.
Meanwhile, cold weather threatened U.S. oil supply, with the North Dakota Pipeline Authority estimating that production in the country's No. 3 producing state would be down by as much as 150,000 bpd.
Source: Reuters
