Oil prices fell on Friday, but were on course to secure a weekly gain, as traders eyed supply chain disruptions in Russia and a drawdown in U.S. gasoline and distillate stockpiles.
Brent oil futures had fallen by 0.8% to $75.86 per barrel as of 08:05 ET (13:05 GMT), while West Texas Intermediate (WTI) crude futures had slipped by 0.9% to $71.85 per barrel.
Oil prices rose this week as the Caspian Pipeline Consortium (CPC), a major route for Kazakh oil exports, reduced flows by 30-40% after a Ukrainian drone hit Russia's Kropotkinskaya pumping station.
Meanwhile, Russia escalated attacks on Ukraine's energy infrastructure, damaging gas production facilities in Kharkiv. The strikes aimed to disrupt Ukraine's heating capabilities amid winter.
The market was also facing supply challenges in North Dakota as severe cold weather impacted operations. According to the North Dakota Pipeline Authority, oil production has declined by 120,000 to 150,000 barrels per day, with natural gas output also affected.
"Supply uncertainty continues to support the oil market, which faces multiple risks, including disruptions to Kazakh flows, the potential for a delay in the return of OPEC+ barrels, weather events in the US, and ever-present sanctions risks hanging over the market," ING analysts said in a recent note.
Adding to the supply concerns, media reports have shown that the OPEC producer group and its allies, known as OPEC+, may delay increasing supply to the market.
"However, potential restarts of oil flows from Iraq's Kurdistan region, and soon, are offsetting these supply risks," ING analysts added.
Source: Investing.com
