Oil prices have found a measure of stabilization following a recent uptick, as OPEC+ delegates conveyed that the coalition is contemplating the postponement of several scheduled monthly supply increases. This discussion comes in the wake of Ukrainian drones reportedly targeting a crude oil pumping station in Russia, impacting supply dynamics.
Currently, Brent crude is trading above $75 per barrel after a modest rise seen on Monday. Meanwhile, West Texas Intermediate (WTI) prices hover around $71 per barrel.
Delegates from OPEC+ have indicated that the coalition may delay a series of monthly supply increases that were slated to commence in April. This proposed delay comes amidst operational disruptions, particularly affecting the primary export pipeline from Kazakhstan due to the recent drone attack.
If enacted, this would mark the fourth occasion the coalition has opted to reconsider plans to restore production levels affected since 2022, which includes a proposed increase of 120,000 barrels per day. However, Russian Deputy Prime Minister Alexander Novak has stated that the discussion of any postponement is not currently on OPEC+’s agenda.
Novak remarked, “The strike on the Kazakh export pipeline in Russia served as a catalyst, prompting a re-evaluation of certain market parameters.” He noted that market expectations surrounding supply avenues from OPEC+, including Russia, will remain a focal point in the longer term.
In parallel developments, Iraqi Oil Minister Hayyan Abdul-Ghani announced that exports from the Kurdistan region of Iraq could potentially resume within a week. The pipeline connecting the region to the Turkish port of Ceyhan was halted in March 2023.
Crude prices have faced a tumultuous start this year, relinquishing earlier gains following U.S. geopolitical maneuvers, including the imposition of tariffs, which have raised concerns regarding global economic growth and energy demand.
Market indicators reveal signs of weakness, as the volume of upward momentum in crude trading has diminished substantially.
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