Oil Prices Climb on Russian Supply Disruptions and U.S. Demand Optimism

Crude oil sees its largest weekly gains in weeks as geopolitical tensions and seasonal refinery maintenance impact supply and demand dynamics.

Brent crude and West Texas Intermediate (WTI) are set for weekly gains of 1.4% and 3%, respectively, marking a rebound after weeks of declines.
Russian oil supply disruptions, including reduced Caspian Pipeline Consortium flows due to a Ukrainian drone attack, have heightened market concerns.
Kazakhstan has managed to pump record oil volumes despite damage to its primary export route through Russia, though the mechanism behind this increase remains unclear.
U.S. gasoline and distillate inventories fell last week, driven by seasonal refinery maintenance, while crude oil stockpiles increased, according to the Energy Information Administration.
Hopes for a resolution to the Russia-Ukraine conflict have diminished, with tensions between Ukraine and the U.S. complicating peace negotiations and sanctions relief discussions.