Oil prices remained steady following an advance, with Brent crude trading above US$75 a barrel and West Texas Intermediate near US$71. This comes as OPEC+ delegates discuss the possibility of postponing their planned production hike in April. The group is considering delaying the restoration of output, which had been previously reduced during the pandemic.
The delay would mark the fourth time OPEC+ has postponed the planned monthly supply increases, with a proposal to raise production by 120,000 barrels per day. Russian Deputy Prime Minister Alexander Novak, however, stated that OPEC and its allies had not yet discussed any deferral.
Meanwhile, tensions between Ukraine and Russia contributed to some market volatility. Ukrainian drones attacked a crude-pumping station in Russia, resulting in a slowdown of exports through the key pipeline from Kazakhstan. The incident has added bearish sentiment to the market, according to market strategist Yeap Jun Rong from IG Asia Pte.
In another development, Iraq’s semi-autonomous Kurdistan region could resume oil exports within a week, as stated by Iraqi Oil Minister Hayyan Abdul Ghani. Exports had been halted in March 2023 due to a dispute, with the pipeline running to Turkey’s Ceyhan port.
Crude oil prices have had a turbulent start to the year, impacted by US President Donald Trump’s tariff policies, which raised concerns about slowing global growth and reduced energy demand. Additionally, market indicators, including timespreads, have shown signs of weakness, leading to a reduction in net-bullish positions on crude.
