Crude oil futures continued to climb during Wednesday’s European morning hours, marking a third consecutive session of gains. Rising concerns about supply disruptions were at the forefront of market activity, pushing prices higher.
As of 07:55 GMT, front-month April 2025 ICE Brent futures were trading at $76.35 per barrel, up from Tuesday’s settlement of $75.84. Similarly, April 2025 NYMEX WTI was at $72.30 per barrel, compared to Tuesday’s close of $71.83. March 2025 WTI was also slightly higher at $72.33 per barrel.
Supply Concerns Fuel Price Increase
The recent increase in oil prices follows a series of supply-side issues. A drone attack damaged a critical pumping station that transports Kazakh and Russian crude oil to Novorossiysk. As a result, operator Transneft has warned that crude flows through the Caspian Pipeline Consortium (CPC) could decline by as much as 30% for up to two months. This pipeline has the capacity to carry 1.4 million barrels per day (bpd) to the Black Sea.
Additionally, an ongoing freeze across the United States has resulted in production shutdowns. The North Dakota Pipeline Authority reported that output in the state, the third-largest oil producer in the U.S., had dropped by approximately 150,000 bpd.
OPEC+ Discussions and Speculation
Ongoing speculation about OPEC+ also contributed to the market’s momentum. Reports suggest that the group is considering further delaying planned production increases, potentially making this the fourth such delay. Although no official comments have been made, unnamed delegates have indicated that the state of the global economy and current oil market conditions make an increase too risky at this time.
According to current plans, OPEC+ intends to unwind about 2.2 million bpd between April 2025 and September 2026, beginning with a modest increase of 138,000 bpd.
Russian, Iranian, and Venezuelan Oil Exports in Focus
Traders are also closely monitoring the impact of stricter sanctions on Russian crude, as well as potential threats to Iranian and Venezuelan oil exports. While preliminary peace talks concerning the Ukraine war raised hopes for a long-term easing of sanctions, Russia’s commitment to OPEC+ limits any likelihood of increased oil production in the near future.
Goldman Sachs recently stated, “We believe that Russia’s crude oil production is constrained by its OPEC+ 9 million bpd production target, rather than current sanctions, which are affecting the destination but not the volume of oil exports.”
The market’s focus remains on these supply disruptions and geopolitical factors, which continue to shape oil price movements.
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