Oil Prices Hold Steady as Supply Disruptions Offset Weak Fundamentals
Oil prices remained steady in early trading on Tuesday, following a drone attack on a Russian oil pipeline station that briefly disrupted crude flows from Kazakhstan.
Market Update (as of 01:37 GMT)
Contract | Price | Change |
Brent Crude | $75.15 | -$0.07 (-0.09%) |
WTI Crude | $71.21 | +$0.47 |
Note: WTI settlement was delayed due to the U.S. Presidents’ Day holiday.
Geopolitical Developments Impacting Supply
The drone strike on the Kropotkinskaya station in Russia’s southern Krasnodar region reduced shipments from Kazakhstan. This pipeline, managed by the Caspian Pipeline Consortium (CPC), transports crude for major Western firms, including Chevron and ExxonMobil.
Despite the attack, the Black Sea CPC Blend oil loading schedule for February remains unchanged, according to sources familiar with the plan.
Market Outlook: Weak Fundamentals Capping Gains
🔹 BMI Research forecasts Brent crude will average $76 per barrel in 2025, a 5% decline from the 2024 average, citing:✅ Market oversupply✅ Tariffs and trade tensions
🔹 OPEC+ Production Plans
OPEC+ is not considering further delays to its scheduled monthly oil supply increases, which are set to begin in April.
The group initially postponed the supply boost in December due to weaker demand and rising non-OPEC supply.
While the drone attack briefly disrupted supply, weak market fundamentals are keeping oil prices in check. OPEC+’s decision to proceed with output increases in April will be a key factor influencing price direction in the coming months.
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