Crude Oil Pares Gains
Crude oil hovered around $102 a barrel on Tuesday after rising 1.3% in the previous session, as markets balanced ongoing supply risks in the Middle East against signs of possible progress on a Russia-Ukraine energy truce. Prices eased from earlier highs after Turkey said it was working to broker an agreement between Kyiv and Moscow to halt attacks on energy infrastructure and Black Sea shipping. Ukraine has indicated it would support such an arrangement if Russia agrees, while the Kremlin described the proposal as a positive idea. In the Middle East, supply concerns remain elevated after Saudi Arabia shut its East-West pipeline. The route has provided an important alternative to exports through the Strait of Hormuz. Saudi Arabia is reportedly seeking to increase shipments through Hormuz while the pipeline remains offline, although reports suggest repairs could take several weeks. US Energy Secretary Chris Wright, however, expects the pipeline to resume operations soon.
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Brent crude pared gains to below $106 a barrel on Tuesday after rising 1% in the previous session, as markets balanced ongoing supply risks in the Middle East against signs of possible progress on a Russia-Ukraine energy truce. Prices eased from earlier highs after Turkey said it was working to broker an agreement between Kyiv and Moscow to halt attacks on energy infrastructure and Black Sea shipping. Ukraine has indicated it would support such an arrangement if Russia agrees, while the Kremlin described the proposal as a positive idea. In the Middle East, supply concerns remain elevated after Saudi Arabia shut its East-West pipeline.
The route has provided an important alternative to exports through the Strait of Hormuz. Saudi Arabia is reportedly seeking to increase shipments through Hormuz while the pipeline remains offline, although reports suggest repairs could take several weeks. US Energy Secretary Chris Wright, however, expects the pipeline to resume operations soon.