Brent crude oil prices retreated slightly in early trading on Tuesday after a rise in the previous session, driven by concerns over a drone attack on a Russian oil pipeline pumping station, which disrupted flows from Kazakhstan.
By 0137 GMT, Brent crude futures were down by 7 cents, or 0.09%, trading at $75.15 per barrel. In contrast, U.S. West Texas Intermediate (WTI) crude saw a 47-cent increase, reaching $71.21 per barrel, though the WTI contract had not settled at its usual time on Monday due to the U.S. Presidents’ Day holiday.
The attack on the Kropotkinskaya station in Russia’s Krasnodar region, which caused a reduction in Kazakhstan’s oil shipments to global markets, has disrupted the flow of crude to Western buyers, including Chevron and Exxon Mobil. Despite the incident, the operator of the pipeline, Caspian Pipeline Consortium, stated on Monday that the Black Sea CPC Blend oil loading plan for February would remain unchanged.
The overall price movement, however, remained subdued due to weak market fundamentals. Analysts from BMI noted that they expect Brent prices to average $76 per barrel in 2025, a 5% drop from 2024 levels, citing factors such as market oversupply, trade tensions, and tariffs.
Meanwhile, OPEC+ producers are reportedly not considering any delays to their scheduled monthly oil production increases set to begin in April. This follows a decision in December to push back a planned output hike, driven by weak demand and rising non-OPEC supply.
Related topics:
How to Find the Market Price of a Bond?
AI Stocks: The ‘Show Me’ Moment for Tech Giants Amid Growing Competition
Experience Co Ltd (ASX:EXP) Shares Plunge 28%, Raising Questions About Its Valuation
