Crude oil futures traded marginally higher following supply disruptions in Russia and the US.
At 9.56 am on Wednesday, April Brent oil futures were at $75.87, up by 0.04 per cent, and April crude oil futures on WTI (West Texas Intermediate) were at $71.86, up by 0.04 per cent.
February crude oil futures were trading at ₹6256 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹6233, up by 0.37 per cent, and March futures were trading at ₹6263 against the previous close of ₹6247, up by 0.26 per cent.
On Monday, Caspian Pipeline Consortium (CPC) had reported drone attacks on crude oil transportation facility PS Kropotkinskaya.
CPC said that the consequences of this attack will be eliminated within 1.5 to 2 months. This may lead to a reduction of oil throughout volumes from Kazakhstan by about 30 per cent.
CPC unites major companies of the fuel and energy sector from Russia, Kazakhstan, the USA, and several West European countries. The key operational task of the consortium is to pump crude oil extracted from Kazakhstani oil fields. It had a throughput of 63 million tonnes in 2024.
Of this, 74 per cent was owned by the US and other Western shippers. Chevron alone pumped 26.8 million tonnes via CPC in 2024, which is about 20 per cent of the total worldwide production achieved by the US corporation.
A statement posted on CPC website said the role of the Consortium in ensuring global energy security and realizing the economic interests of the participating countries is unanimously recognized by all CPC shareholders and the leadership of the respective states, which is eloquently evidenced by the fact that no sanctions or restrictive measures have ever been imposed on the Consortium.
Citing the impact of cold weather on US oil supply, a Reuters report said the North Dakota Pipeline Authority is estimating production in the country’s no. 3 producing state to be down by as much as 150,000 barrels per day because of the cold.
Gains in the crude oil market were limited as the US and Russia began talks to end war in Ukraine. Officials from the US and Russia met in Riyadh for negotiations. However, the absence of Ukraine’s representative in the meeting created apprehensions over the likely delays in reaching a deal.
Market players feels that a possible peace deal could help lift sanctions on Russia. This may help increase crude oil supply to the global market. Russia is one of the major producers of crude oil in the global market.
March natural gas futures were trading at ₹344.10 on MCX during the initial hour of trading on Wednesday against the previous close of ₹338.90, up by 1.53 per cent.
