DTN Oil Update
Oil Futures Remain Mixed Amid Supply Disruptions, Peace Talks
TACOMA, Wash. (DTN) -- Oil futures traded mixed Tuesday as supply disruptions from Kazakhstan lifted prices, while uncertainty over ongoing peace talks between the United States and Russia kept gains in check.
NYMEX WTI futures for March delivery rose $1.06 to $71.80 barrel (bbl), while April ICE Brent futures increased $0.58 to $75.81 bbl. March RBOB futures fell $0.0024 to $2.0875 gallon, while ULSD futures for March delivery dropped $0.0229 to $2.4389 gallon.
The U.S. Dollar Index strengthened 0.340 points to 106.915 against a basket of foreign currencies.
A Ukrainian drone damaged a CPC crude oil pumping station in Russia, halting flows on the export pipeline and raising concerns about a potential 30% reduction in Kazakhstan's oil exports for up to two months, according to Transneft. Kazakh crude oil, rebranded as KEBCO after Russia's invasion of Ukraine, accounts for about 1% of global supply. This supply disruption has contributed to the upward movement in oil prices, though gains remain limited as ongoing peace talks between the U.S. and Russia over the Ukraine conflict continue to shape market sentiment.
New sanctions on Russian crude oil exports have increased demand for Middle Eastern crude among Indian and Chinese refiners, pushing Dubai-Oman crude to a 15-year-high $2.43 premium to Brent.
Oversupply concerns have also weighed on the market after Iraq's oil minister on Monday reiterated that flows on the Kirkuk-Ceyhan pipeline could resume within a week, potentially adding 300,000 to 400,000 barrels per day (bpd) to global supply. However, no formal agreement has been reached between Baghdad and Kirkuk.
Nicholas Bell can be reached at Nicholas.Bell@dtn.com
