Oil prices on track for weekly rise amid supply disruptions

Published 21/02/2025, 03:04
Updated 21/02/2025, 14:12
© Reuters.

Investing.com - Oil prices fell on Friday, but were on course to secure a weekly gain, as traders eyed supply chain disruptions in Russia and a drawdown in U.S. gasoline and distillate stockpiles. 

Brent oil futures had fallen by 0.8% to $75.86 per barrel as of 08:05 ET (13:05 GMT), while West Texas Intermediate (WTI) crude futures had slipped by 0.9% to $71.85 per barrel.

Oil prices rose this week as the Caspian Pipeline Consortium (CPC), a major route for Kazakh oil exports, reduced flows by 30-40% after a Ukrainian drone hit Russia’s Kropotkinskaya pumping station.

Meanwhile, Russia escalated attacks on Ukraine’s energy infrastructure, damaging gas production facilities in Kharkiv. The strikes aimed to disrupt Ukraine’s heating capabilities amid winter. 

The market was also facing supply challenges in North Dakota as severe cold weather impacted operations. According to the North Dakota Pipeline Authority, oil production has declined by 120,000 to 150,000 barrels per day, with natural gas output also affected.

“Supply uncertainty continues to support the oil market, which faces multiple risks, including disruptions to Kazakh flows, the potential for a delay in the return of OPEC+ barrels, weather events in the US, and ever-present sanctions risks hanging over the market,” ING analysts said in a recent note.

Adding to the supply concerns, media reports have shown that the OPEC producer group and its allies, known as OPEC+, may delay increasing supply to the market.

“However, potential restarts of oil flows from Iraq’s Kurdistan region, and soon, are offsetting these supply risks,” ING analysts added.

US crude inventories rise above expectations - EIA

The U.S. Energy Information Administration (EIA) released its weekly report on Thursday for the week ending February 14. The EIA’s latest report showed U.S. crude inventories rose by 4.6 million barrels to 432.5 million, higher than expectations of a 3.1 million barrels rise, indicating softer demand. 

Despite this increase, draws in gasoline and distillate stocks provided some support to prices. Gasoline and distillate stocks fell by 151,000 and 2.1 million barrels, respectively, reflecting steady consumption.

The rise in crude stocks alongside falling refined product inventories highlights complex supply-demand dynamics, suggesting refiners are reducing crude intake—possibly due to maintenance or lower margins—while end-user fuel demand stays strong.

(Scott Kanowsky contributed reporting.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.