April 03, 2024 (MLN): Oil prices edged lower after four straight gains despite concerns over crude and fuel supply, following Ukrainian attacks on Russian refineries.
Brent crude traded near $88.65 per barrel, down by 0.24% on the day.
While West Texas Intermediate crude (WTI) was at $84.59 per barrel, down by 0.31% on the day.
Quarterly, Brent rose by 12.9% in the first quarter of 2024, while WTI also surged by 15.8%.
Prices surged after an Ukrainian drone attack on another Russian refinery threatened to take even more of the country's processing capacity offline, curbing output of gasoline and diesel fuel. Russia is among the top three global oil producers and one of the largest exporters of oil products, as Reuters reported.
Investors are also concerned that Iranian retaliation against Israel for an attack on Monday that killed high ranking military personnel could potentially lead to supply disruptions in the key Middle East producing region after it vowed revenge.
Iran, who provides support of the Hamas militia fighting Israel in Gaza, is the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC).
"Geopolitical tensions continue to cast uncertainty on potential supply disruptions," said IG's market strategist Yeap Jun Rong, adding that oil prices have continued the run to a five-month high, with the trend retaining upward bias.
Adding to the supply worries, Mexico's state energy company Pemex requested its trading unit to cancel up to 436,000 barrels per day of crude exports this month as it gets ready to process domestic oil at the new Dos Bocas refinery, an internal document reviewed by Reuters showed.
Early indications also show oil stockpiles in the U.S., the world's biggest oil user, are declining after traders said on Tuesday data from the American Petroleum Institute reported crude inventories fell by 2.3 million barrels last week.
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Posted on: 2024-04-03T11:30:48+05:00
