DTN Oil Update
Oil Futures Edge Higher on Supply Disruptions
VIENNA (DTN) -- Oil futures edged higher Wednesday morning on global supply disruptions, with concerns over the bearish effect of additional U.S. import tariffs on fuel demand growth capping gains.
NYMEX WTI futures for March delivery rose by $0.62 to $72.47 barrel (bbl), while April ICE Brent futures added $0.51 to $76.35 bbl. March RBOB gained $0.0124 to $2.0991 gallon, while ULSD futures for March delivery rose by $0.0194 to $2.4600 gallon.
The U.S. Dollar Index strengthened by 0.160 points to 107.115 against a basket of foreign currencies.
Russian officials said Monday's attack on the CPC export pipeline could throttle flows by 30% for several weeks to months until damages are repaired, amounting to some 350,000 to 400,000 barrels per day (bpd).
Cold weather in the U.S., meanwhile, has shut in some crude oil production, with the North Dakota Pipeline Authority estimating production being down 150,000 bpd as of Tuesday.
On the flip side, a return of flows on the Kirkuk-Ceyhan pipeline looks more likely after Iraqi officials on Tuesday claimed to have reached a solution to the dispute between Bagdad and Kirkuk, bringing back at least 300,000 bpd of crude oil to the global market.
Karim Bastati can be reached at Karim.Bastati@dtn.com
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