Oil prices retreated from early gains on Tuesday, influenced by uncertainty over how supply will be affected by Ukraine-Russia peace talks, international trade tariffs, and OPEC crude output.
Brent crude futures fell 4 cents to $75.18 per barrel, while US West Texas Intermediate crude futures rose 43 cents to $71.17 a barrel. The uncertainty surrounding the talks between Russia and Western officials has led analysts to believe that day trading and short-term flows are ruling oil prices at present.
A recent Ukrainian drone attack on a Russian pipeline that pumps about 1% of global crude supply also boosted oil prices, but the damage could reduce oil transit volumes from Kazakhstan by about 30%. Repairing the pipeline may take up to two months.
Additionally, OPEC’s possible delay in monthly supply increases scheduled for April has added to market uncertainty. However, Russian state media denied reports that OPEC members are considering a delay.
The situation highlights the interconnectedness of global oil markets and the ongoing impact of Ukraine-Russia tensions on energy prices.
Source: https://www.livemint.com/market/commodities/oil-prices-give-up-early-gains-as-uncertainty-reigns-over-supply-11739889276104.html