Oil Holds Advance With OPEC Mulling Delay to Production Hike

(Bloomberg) — Oil steadied after an advance as OPEC delegates said the group was considering delaying restoring output, and Ukrainian drones attacked a crude-pumping station in Russia.

Brent crude traded near $75 a barrel after a modest gain on Monday, while West Texas Intermediate was above $71. The cartel and its allies are considering pushing back a series of monthly supply increases due to start in April, according to delegates. Meanwhile, the Ukrainian strike forced exports through the main pipeline from Kazakhstan to slow.

Postponing the 120,000 barrel-a-day hike would mark the fourth time that the alliance has delayed plans to revive production halted since 2022. However, Russian Deputy Prime Minister Alexander Novak said OPEC and its allies hadn’t discussed any deferral, according to Tass.

“A drone strike on Kazakhstan’s export pipeline in Russia has provided the catalyst for some bearish sentiment to unwind,” said Yeap Jun Rong, market strategist for IG Asia Pte. Market expectations on the supply outlook from OPEC and its allies including Russia will be in focus in the longer run, he said.

Elsewhere, exports from Iraq’s semi-autonomous Kurdistan region could resume within a week, Iraqi Oil Minister Hayyan Abdul Ghani said. The pipeline, which runs to the Turkish port of Ceyhan, was halted in March 2023.

Crude has had a rocky start to the year, giving up all of its gains as US President Donald Trump’s use of tariffs threatened to slow global growth and energy demand. Market gauges including timespreads have also flashed signs of weakness, and net-bullish positions on crude have been reduced.

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