WTI appreciates following a Ukrainian drone attack on a pipeline responsible for transporting approximately 1% of the global crude supply.
The Ukrainian attack has led to reduced crude shipments from Kazakhstan, affecting Western firms such as Chevron and ExxonMobil.
Traders closely watch developments in the ongoing Russia-Ukraine peace talks in Saudi Arabia.
West Texas Intermediate (WTI) crude Oil price continues its upward momentum for the second consecutive day, trading around $71.70 per barrel during European hours on Tuesday. The gains follow an attack by Ukrainian drones on a major pumping station of a pipeline in southern Russia, disrupting crude Oil flows from Kazakhstan.
According to Reuters, a senior Russian official confirmed on Tuesday that Ukrainian drones targeted a pipeline responsible for transporting approximately 1% of the global crude supply. He warned that the attack could impact global markets and affect US companies. The disruption has led to reduced crude shipments from Kazakhstan, affecting Western firms such as Chevron and ExxonMobil. The Caspian Pipeline Consortium (CPC) reported on Monday that the Kropotkinskaya station, a key crude Oil transportation facility in Russia’s southern Krasnodar region, was hit by multiple drones.
Traders are also closely watching developments in the Russia-Ukraine peace talks on Tuesday. US and Russian officials are meeting in Saudi Arabia to discuss potential resolutions to the three-year-long conflict in Ukraine and the possibility of restoring US-Russia relations. However, Ukraine, which is not participating in the talks, has made it clear that no agreement can be reached without its involvement. "As a sovereign nation, we simply cannot accept any agreements made without us," President Volodymyr Zelensky said last week.
Meanwhile, reports suggest that OPEC+ producers are not considering postponing the planned series of monthly oil supply increases set to begin in April. However, concerns over a potential global trade war—fueled by US President Donald Trump’s reciprocal tariffs—have limited further gains in Oil prices.
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