Oil prices rise on the back of the situation with Russia
11 February 2025 08:56
Oil prices continued to rise on Tuesday after a report showed that Russian oil production fell short of its quota and on fears of further supply disruptions. However, growth was limited due to concerns that tougher trade tariffs could lead to a slowdown in global economic growth, "Komersant Ukrainian" reports with reference to Reuters.
As of 06:47 Kyiv time, futures for Brent crude oil rose by 24 cents (0.32%) to $76.11 per barrel, while US West Texas Intermediate rose by 19 cents (0.26%) to $72.51. Both contracts showed an increase of about 2% after three consecutive weeks of declines.
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The influence of Russia
According to ANZ analysts, the price recovery came amid signs of a supply squeeze.
“Russia’s oil production in January fell short of OPEC’s quota, easing fears of oversupply. Production fell to 8.962 million barrels per day, 16,000 barrels below the approved levels under the production agreement,”
– they said.
The analysts added that fears of further disruptions were heightened after a Politico report on Monday about European countries’ plans to seize Russia’s shadowy fleet. Russian oil shipments to China and India, the world’s largest oil importers, have been severely disrupted by U.S. sanctions last month targeting tankers, producers and insurers.
The impact of Trump’s trade wars
Additional tension is being created by US sanctions on networks supplying Iranian oil to China, after Donald Trump last week renewed his “maximum pressure” on Iranian oil exports. However, price increases are being restrained by Trump’s latest tariff, which could lead to a slowdown in global growth and energy demand.
On Monday, Trump significantly increased tariffs on steel and aluminum imports to the United States to 25% “without exceptions and exemptions” to support troubled industries, which could increase the risk of a multilateral trade war. The tariff will affect millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries.
Last week, Trump imposed an additional 10% tariff on Chinese goods, to which Beijing responded with its own levies on some American goods, including a 10% duty on crude oil. Oil demand is also being pressured by the US Federal Reserve’s decision to postpone rate cuts until the next quarter, according to a Reuters poll of economists who had previously expected a cut in March.
According to preliminary data from a Reuters poll, crude oil and gasoline stocks in the US are expected to have increased last week, while distillate stocks are likely to have declined.
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