Brent Crude Dips Following Boost from Kazakhstan Pipeline Strike

Image Credit: Reuters

Brent crude oil prices held steady in early Tuesday trading following a gain in the previous session, driven by a drone attack on a Russian oil pipeline that impacted flows from Kazakhstan.

Brent crude futures dipped 7 cents, or 0.09%, to $75.15 a barrel by 0137 GMT, while U.S. West Texas Intermediate (WTI) crude rose by 47 cents to $71.21 a barrel. The WTI contract did not settle at its usual time on Monday due to the U.S. Presidents' Day holiday.

The drone strike on the Kropotkinskaya station in Russia's Krasnodar region disrupted shipments from Kazakhstan to global markets, affecting companies like Chevron and Exxon Mobil, as reported by the Caspian Pipeline Consortium.

Despite the attack, the Black Sea CPC Blend oil loading plan for February remained unchanged, sources familiar with the plan told Reuters.

Weak fundamentals kept the price movement limited. BMI analysts expect Brent prices to average $76 per barrel in 2025, a 5% drop from the 2024 average, citing market oversupply, tariffs, and trade tensions.

A Russian state media report indicated that OPEC+ producers are not considering postponing their planned monthly oil supply increases set to begin in April. OPEC had delayed plans to boost output in December due to weak demand and rising supply outside the group.

Paraphrasing text from "Reuters" all rights reserved by the original author