WASHINGTON (dpa-AFX) - Oil futures settled higher on Wednesday, extending gains from previous session, amid concerns about the outlook for supplies after the recent drone attack by Ukraine on a Russian pumping station.
Meanwhile, the cold weather in the U.S. is threatening oil supply, as the North Dakota Pipeline Authority estimated production in the state would decline by as much as 150,000 bpd.
Reports that the Organization of Petroleum Exporting Countries and allies, collectively known as OPEC+, is considering a delay in monthly supply increases also contributed to the rise in oil prices.
West Texas Intermediate Crude oil futures for March closed higher by $0.40 or about 0.56% at $72.25 a barrel.
Brent crude futures were up $0.25 or 0.33% at $76.09 a barrel a little while ago.
After the drone attack on a pumping station, Russia said Caspian Pipeline Consortium (CPC) oil flows, a major route for crude exports from Kazakhstan, were reduced by 30-40%. According to a Reuters report, a 30% cut would equate to the loss of 380,000 barrels per day (bpd) of market supply.
Russia - US talks to bring an end to the Russia-Ukraine war, and the possibility of the U.S. reducing sanctions on Russia supported oil prices a bit and limited their downside.
Traders await weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API report is due later today, while the EIA is scheduled to release its inventory data Thursday morning. The reports are delayed by a day due to a holiday on Monday for Washington's Birthday.
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