Oil prices extended gains on Wednesday as supply disruptions in the U.S. and Russia tightened global markets, while investors awaited updates on Ukraine peace negotiations.
By 4:05 pm AEDT (5:05 am GMT) Brent crude futures climbed $0.12 or 0.2% to US$75.96 per barrel, while U.S. West Texas Intermediate (WTI) crude for April delivery added $0.13 or 0.2% to $71.968 per barrel.
Oil flows through the pipeline fell by 30-40% on Tuesday after Ukraine’s drone attack on CPC’s largest pump station, according to Russian Deputy Prime Minister Alexander Novak.
Meanwhile, frigid temperatures in the U.S. threatened domestic oil production. The North Dakota Pipeline Authority estimated that output in the state, the third-largest oil producer in the country, could decline by as much as 150,000 bpd due to extreme cold.
The geopolitical landscape remained in focus, as Washington announced plans for further discussions with Moscow on ending the war in Ukraine.
ANZ analysts commented in a note to clients: "The U.S. and Russia signalled an intention to remove sanctions against Moscow as part of any accord to end the conflict in Ukraine.”
Additionally, indirect negotiations between Israel and Hamas over a second stage of a Gaza ceasefire agreement were set to begin, officials confirmed.
