EBC Markets Briefing | Oil steadies on Russian supply jitters

Oil prices held near a one-week high on Wednesday, while the market awaited clarity on sanctions as Washington tries to end the war in Ukraine.

However, Goldman Sachs said any associated easing in sanctions against Russia is unlikely to bring a significant increase in oil flows even if the two countries can finally strike a peace deal.

Russia said Caspian Pipeline Consortium oil flows were reduced by 30-40% on Tuesday after a Ukrainian drone attack on a pumping station. The loss is estimated to be 380,000 bpd, Reuters calculations show.

Elsewhere Israel and Hamas will begin indirect negotiations on a second stage of the Gaza ceasefire deal, which helps reduce the risk of supply disruption.

Adding to the headwind, OPEC+ producers are not considering delaying supply increases that is scheduled to begin in April, Russian Deputy Prime Minister Alexander Novak said on Monday.

Trump said he intends to impose auto tariffs "in the neighbourhood of 25%" and similar duties on semiconductors and pharmaceutical imports, the latest in a series of measures threatening to upend international trade.

Brent crude has been stuck in a recent trading range with few signs of breakout. Therefore, the price could rise to $77 before pulling back.

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