Brent Climbs to $76 Per Barrel on Russian, US Crude Supply Worries

Also, the price of US West Texas Intermediate (WTI) crude futures went up by 40 cents or 0.6 per cent to settle at $72.25 per barrel during the trading day.

Drone attacks on Russian oil infrastructure are reducing supplies with the latest being the Caspian Pipeline Consortium (CPC).

According to Russian Deputy Prime Minister Alexander Novak, oil flows through the pipeline were reduced by 30-40 per cent on Tuesday after a Ukrainian drone attack on a pumping station.

A 30 per cent cut would translate to a 380,000 barrels per day reduction in oil supply.

Meanwhile, President Vladimir Putin suggested the CPC attack might have been coordinated with Ukraine’s Western allies.

In the US, cold weather threatened oil supply, with the North Dakota Pipeline Authority estimating production in the state would decline by as much as 150,000 barrels per day.

There is also increased speculation that the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia and Kazakhstan may decide to delay its planned supply increase in April.

On the Russia-Ukraine front, President Donald Trump took sides with Russia and denounced Ukrainian President Volodymyr Zelenskiy, as he continues to push for an end to the three-year war.

Market analysts noted that if peace does happen, it may not add to supply worries as Russia already has up to 9 million barrels per day cut commitment to the Organisation of the Petroleum Exporting Countries and its allies (OPEC+).

In the middle east, Israel and Hamas will begin indirect negotiations on a second stage of the Gaza ceasefire deal. This could weigh on oil prices by reducing the risk of supply disruption.

Also, the American Petroleum Institute (API) estimated that crude oil inventories in the United rose by 3.34 million barrels for the week ending February 14.

This adds to the almost 18 million barrels of builds in U.S. crude oil inventories during the last four weeks, including a 9 million barrel build in the week prior.

Gasoline (petrol) inventories rose in the week ending February 7 by 2.83 million barrels, offsetting the previous week’s 2.507-million-barrel decrease.

The official data from the US Energy Information Administration (EIA) will be released later on Thursday due to a US holiday on Monday.