Oil Extends Gains as Supply Uncertainties Sprawl Across Market
Oil extended this week’s advance on uncertainties around supplies from Russia, Kazakhstan and the wider OPEC+ alliance.
Brent rose for a third straight session, trading above $76 a barrel. OPEC+ is weighing pushing back output increases for a fourth time. The discussions come against the backdrop of a host of supply issues this week.
Kazakhstan is seeking talks with Ukraine after drone attacks on a pumping station in Russia could reduce its exports by 30%.
Traders are also looking to the return of several hundred thousand barrels a day of Iraqi crude flowing via Kurdistan, but Turkey — home to the port the supplies would eventually be shipped from — said it’s yet to hear about a restart.
The Group of Seven is considering tightening the price cap on oil exports that help fund Vladimir Putin’s military campaign. Meanwhile, Volodymyr Zelenskiy accused President Donald Trump of swallowing Kremilin propaganda, after the Ukrainian leader was excluded from US talks with Russia to end the war in his country.
Brent has traded in a relatively narrow range of less than $4 a barrel this month, with a gauge of implied volatilty declining to the lowest since July. That followed a tumultuous start to the year that saw futures rise on cold weather and a tightening of sanctions, and then fall as US President ’s tariff threats spooked markets.
“Crude prices trade higher for a third day on continued speculation that OPEC+ is considering delaying further production hikes, and uncertainty around Russian oil flows as G-7 consider tightening the oil price cap on Russian exports,” said Ole Hansen, head of commodities strategy at Saxo Bank.
Elsewhere, Trump said Chevron Corp.’s ability to continue exporting crude from Venezuela is under review, underscoring continued tensions that could spill over to energy.
Brent for April settlement rose 1% to $76.57 a barrel at 9:10 a.m. in New York. WTI for March delivery gained 1% to $72.73 a barrel.
Source : Bloomberg
