Oil positive factors on U.S., Russia provide curtailments as market seeks Ukraine talks readability

By Arathy Somasekhar

(Reuters) – Oil costs edged increased on Wednesday amid oil provide disruptions within the U.S. and Russia and as markets awaited readability on the Ukraine peace talks.

Brent crude futures gained 20 cents, or 0.3% at $76.04 a barrel at 0146 GMT, climbing for a 3rd day.

U.S. West Texas Intermediate crude futures for March rose 23 cents, or 0.3%, to $72.08 a barrel, up 1.7% from the shut on Friday after not deciding on Monday due to the Presidents’ Day public vacation. The March contract expires on Thursday and the extra lively April contract gained 0.3% to $72.04.

Russia stated oil flows via the Caspian Pipeline Consortium (CPC), a serious route for crude exports from Kazakhstan, had been decreased by 30%-40% on Tuesday after a Ukrainian drone assault on a pumping station. A 30% reduce would equate to the lack of 380,000 barrels per day of provide to the market, in response to Reuters calculations.

In the meantime, chilly climate threatened U.S. oil provide, with the North Dakota Pipeline Authority estimating that manufacturing within the nation’s No. 3 producing state can be down by as a lot as 150,000 bpd due to the chilly.

U.S. President Donald Trump’s administration stated on Tuesday it had agreed to carry extra talks with Russia on ending the conflict in Ukraine. A deal may ease or assist take away sanctions which have disrupted the flows of Russian oil shipments.

Israel and Hamas may even start oblique negotiations on a second stage of the Gaza ceasefire deal, officers stated on Tuesday.

Nonetheless, Trump stated on Tuesday he intends to impose auto tariffs “within the neighbourhood of 25%” and comparable duties on semiconductors and pharmaceutical imports. Tariffs may increase costs for client merchandise, weaken the financial system and scale back demand for gas.

(Reporting by Arathy Somasekhar in Houston; Modifying by Christian Schmollinger)