Oil Prices Hold Steady, Set for Best Week Since January on Supply Disruptions

Oil prices remained stable in Asian trading on Friday, poised for their strongest weekly gain since early January. Supply disruptions continued to support the market, despite a larger-than-expected rise in U.S. crude inventories.

Brent crude futures held at $76.45 per barrel, while West Texas Intermediate (WTI) crude remained at $72.28. Both benchmarks were on track for a nearly 2.5% weekly gain, driven by concerns over global supply constraints.

Kazakh oil exports via the Caspian Pipeline Consortium (CPC) dropped 30-40% after a Ukrainian drone strike hit Russia’s Kropotkinskaya pumping station. Meanwhile, Russia intensified attacks on Ukraine’s energy infrastructure, damaging key gas production sites in Kharkiv.

In the U.S., severe cold weather in North Dakota disrupted operations, cutting oil production by 120,000 to 150,000 barrels per day, further tightening supply. Additionally, reports indicate OPEC+ may delay planned production increases, adding to market uncertainty.

However, potential restarts of oil flows from Iraq’s Kurdistan region could help offset some of these supply constraints, according to analysts at ING.

Despite supply concerns, U.S. crude inventories rose by 4.6 million barrels to 432.5 million, exceeding expectations of a 3.1 million-barrel increase, signaling weaker demand. However, gasoline and distillate stockpile declines of 151,000 and 2.1 million barrels, respectively, suggested steady fuel consumption.

The rise in crude stocks alongside falling refined product inventories highlights complex supply-demand dynamics, with refiners likely reducing intake due to maintenance or lower margins. Meanwhile, strong end-user demand continues to provide price support.