Oil prices ticked up on Wednesday as traders weighed supply disruptions in the U.S. and Russia, while keeping an eye on Ukraine peace talks for potential market impacts.
Supply disruptions drive oil higher
Brent crude futures rose 0.2% to $75.98 per barrel, while WTI crude climbed to $72.01 for the expiring March contract. Cold weather in the U.S. has caused production cuts of up to 150,000 barrels per day, while a Ukrainian drone attack on a Russian oil pumping station has disrupted 30%-40% of crude exports from Kazakhstan.
OPEC+ and market speculation
Investors are also speculating that OPEC+ may delay its planned April supply increase, adding further uncertainty to global oil supply levels. Analysts believe any easing of sanctions on Russia through Ukraine peace talks may not significantly impact oil flows, as Russia remains bound by its OPEC+ production targets.
The impact of tariffs on oil demand
While supply concerns pushed prices up, new tariff threats from President Trump could weigh on oil demand. His proposed 25% tariffs on auto, semiconductor, and pharmaceutical imports could slow economic growth, potentially reducing fuel consumption.
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