Crude oil prices stabilize

27 Feb 2023 , 09:08 AM

Early Monday trading saw minimal movement in oil prices as Russia’s promises to further reduce oil supply continued to underpin prices while rising global inflation threats and US crude stocks weighed.

West Texas Intermediate U.S. crude futures (WTI) were up 4 cents, or 0.05%, at $76.36 a barrel, while Brent crude futures were down 2 cents, or 0.02%, at $83.14 per barrel.

Russia intends to go beyond its previously announced production cuts of 5% of its output during the month by reducing oil shipments from its western ports by up to 25% in March compared to February.

Although U.S. oil inventories are at their highest level since May 2021, the U.S. Federal Reserve meeting this week signalled further monetary tightening, and the currency rose sharply last week, prices for crude oil moved up early on Monday before giving back some gains.

When Russian troops initially entered Ukraine on February 24, 2022, the price of oil decreased by nearly a sixth in that same year.

A day after Poland supplied its first Leopard tanks to Ukraine, the head of Polish refiner PKN Orlen stated on Saturday that Russia has most recently stopped oil deliveries to Poland via the Druzhba pipeline.

Prices rose to a record high of around $128 per barrel two weeks after the invasion due to supply concerns, but have since dropped due to concerns about a recession in the world economy.

For feedback and suggestions, write to us at [e-mail]