Oil prices steadied on Tuesday after a slight gain on Monday, as OPEC+ delegates indicated the group may delay restoring oil production and as Ukrainian drones targeted a Russian crude-pumping station. Brent crude hovered around $75 a barrel, while West Texas Intermediate (WTI) was priced above $71.
According to OPEC+ delegates, the cartel and its allies are considering postponing planned monthly output increases starting in April. This would mark the fourth time since 2022 that the alliance has delayed a production revival. However, Russian Deputy Prime Minister Alexander Novak denied any discussions on delaying the planned hikes, as reported by Tass.
The uncertainty surrounding OPEC+ production plans comes as the market reacts to geopolitical tensions. A Ukrainian drone strike on a crude export pipeline in Russia has forced a slowdown in shipments through the key route connecting Kazakhstan with international markets, contributing to a more bearish sentiment in oil markets. Yeap Jun Rong, a market strategist at IG Asia Pte, noted that the drone attack helped unwind some of the negative market momentum, adding that OPEC’s future supply decisions will remain a key focus for traders.
In other developments, Iraq’s semi-autonomous Kurdistan region is poised to resume oil exports within a week. Iraqi Oil Minister Hayyan Abdul Ghani confirmed that the pipeline to the Turkish port of Ceyhan, which has been halted since March 2023, could soon reopen.
Crude oil prices have faced volatility since the beginning of the year, losing earlier gains due to concerns over global economic growth and energy demand. US President Donald Trump’s tariff policies have added to fears of a slowdown. Market indicators, including timespreads, have shown signs of weakening, while net bullish positions on crude have declined.
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