Economy Update – Baghdad
Oil prices have experienced a modest increase on Wednesday, driven by disruptions in oil supplies from the United States and Russia, alongside anticipation for substantive peace negotiations in Ukraine.
Brent crude futures climbed by 20 cents, or 0.3%, reaching $76.04 per barrel as of 01:46 GMT, marking a rise for the third consecutive day.
Similarly, US West Texas Intermediate crude futures rose by 23 cents, also a 0.3% increase, to settle at $72.08 per barrel.
Recent reports from Russia indicate that oil transport via the Caspian Sea pipeline—a crucial route for Kazakhstan’s crude exports—has dropped by 30% to 40% following a Ukrainian drone strike on a pumping station.
In the United States, cold weather conditions are posing risks to oil production. North Dakota producers have forecasted a potential decline of up to 150,000 barrels per day in output from the country’s third-largest oil-producing state due to frigid temperatures.
Further complicating the situation, the administration of US President Donald Trump announced on Tuesday its willingness to engage in additional discussions with Russia aimed at resolving the conflict in Ukraine. Such discussions could lead to a reduction in sanctions impacting Russian oil shipments.
However, President Trump also indicated plans to impose tariffs of approximately 25% on certain imports, including semiconductors. These tariffs could escalate consumer goods prices, dampen economic growth, and subsequently diminish fuel demand.
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