2024-03-26 10:37:58
Oil prices stabilized today, Tuesday, following rising in the last session, amid mixed investor expectations following Russia’s supply cuts as a result of the recent Ukrainian attacks on Russian refineries, but a slight decline in the dollar provided some support.
At the time of writing the report, the price of a barrel of Brent crude for the nearest delivery fell 0.12% to $86.65, while the price of a barrel of US crude fell 0.11% to $81.86.
Ukrainian attacks
The price of a barrel of Brent crude rose 1.5% in yesterday’s session, and West Texas Intermediate crude rose 1.6% following Russia asked its oil companies to reduce production to achieve the goal of the Organization of the Petroleum Exporting Countries (OPEC), which is 9 million barrels per day. In late February, Russia was producing regarding 9.5 million barrels per day.
Russia, one of the three largest oil producers in the world and one of the largest exporters of petroleum products, is facing Ukrainian attacks on its refineries, which Goldman Sachs analysts said would reduce production capacity by regarding 900,000 barrels per day, perhaps for weeks and in some cases permanently.
After a Ukrainian drone attack on Saturday, the Russian oil company Rosneft closed a crude oil production unit with a capacity of 70,000 barrels per day at its Kuibyshev refinery in the city of Samara.
Oil prices fell slightly during today’s trading following rising yesterday (Getty)
The dollar supports
Oil prices received support from a slight decline in the dollar from the last session, while the consequences of the Ukrainian attacks and Russian cuts are not yet clear.
A decline in the dollar usually leads to a lower cost of purchasing oil in other currencies, which may boost overall demand.
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