Oil ascends amid fears of the failure of American and Russian supplies economy

Oil prices rose today, Wednesday, with increasing concerns about supplies in the United States and Russia, while the markets are waiting for clear peace talks in Ukraine, according to Reuters.

Brent crude futures rose by 64 cents, or 0.8%, to $ 76.48 a barrel by 13:39 GMT, making gains for the third consecutive session.

The US West Texas Intermediate crude futures also rose March 75 cents, or 1%, to reach $ 72.60 a barrel, an increase of 2.6% from the closure of Friday, after there was no settlement on Monday due to the president’s day holiday.

The March contract expires tomorrow, Thursday, while the April, the most trading 70 cents, or 1%, rose to $ 72.53 a barrel.

Reasons for high prices

Reuters quoted Tony Sikammore, the IG market analyst, as saying: In the United States of supplies. “

He added: “There is also speculation that OPEC Plus may decide to postpone the increase in supplies in April.”

The effect of the Ukrainian attack

Reuters explained that Russia announced the decrease in oil flows through the Caspian Sea pipeline, which is a major path for crude oil exports from Kazakhstan, by 30-40% on Tuesday, after a pumping station was attacked by Ukrainian drones.

According to Reuters accounts, a 30% reduction in supplies is equivalent to a loss of 380,000 barrels per day of oil -heading oil.

In the United States, the cold weather threatened supplies, as the North Dakota pipeline was estimated that the state’s production, the third largest oil producer in America, could decrease up to 150 thousand barrels per day due to the severe cold.

Geopolitical developments

Corphen Wong, the chief market analyst at Uanda, said that the way to end the war in Ukraine may face challenges, noting that Ukrainian President Voludimir Zellinski postponed his visit to Saudi Arabia, where talks are taking place between US officials and Russians.

On the diplomatic level, the administration of US President Donald Trump announced on Tuesday its approval to hold more talks with Russia on ending the war in Ukraine. Any peace agreement would reduce or eliminate the sanctions imposed on Russian oil exports, which may lead to market stability.

But analysts at Goldman Sachs told Reuters that a possible peace agreement between Ukraine and Russia, and the reduction of sanctions, would not necessarily lead to a significant increase in Russian oil flows.

They added: “We believe that Russia’s production of crude oil is bound by the borders that OPEC Plus set, which amounts to 9 million barrels per day, and not because of the current sanctions that affect the destination and not the size of exports.”

Israel and the Palestinian resistance are also expected to start indirect negotiations to discuss the second phase of the ceasefire agreement in Gaza. It is possible that the success of these negotiations will lead to a decline in oil prices, due to the low fears of supplies’ cuts as a result of the conflict in the region.

American policies

US President Donald Trump said yesterday that he intends to impose 25% customs duties on auto imports, semi -conductors, and medicines.

This would lead to high prices of consumer products and the weakening of the American economy, which will reduce the demand for fuel and pressure the prices of oil in the future.