Oil prices climbed on Wednesday due to supply disruptions in the U.S. and Russia, while markets awaited updates on Ukraine peace talks.
Brent crude futures rose 20 cents (0.3%) to $76.04 per barrel at 0146 GMT, marking a third consecutive day of gains. U.S. West Texas Intermediate (WTI) crude for March increased by 23 cents (0.3%) to $72.08 per barrel, up 1.7% from Friday’s close. The more active April contract also gained 0.3% to $72.04.
Russia reported a 30%-40% reduction in oil flows through the Caspian Pipeline Consortium (CPC) after a Ukrainian drone attack on a pumping station. A 30% cut translates to an estimated loss of 380,000 barrels per day, according to Reuters.
Meanwhile, harsh winter conditions in the U.S. have impacted oil output. The North Dakota Pipeline Authority estimated that the state’s production could drop by up to 150,000 barrels per day due to extreme cold.
On the geopolitical front, the U.S. and Russia have agreed to further discussions on resolving the Ukraine conflict, potentially affecting Russian oil sanctions. Additionally, Israel and Hamas are set to begin indirect negotiations on the next phase of a Gaza ceasefire deal.
However, market concerns arose after former U.S. President Donald Trump announced plans to impose 25% tariffs on auto imports and similar duties on semiconductors and pharmaceuticals, which could impact economic growth and fuel demand.
