Drone strike on Russian pump station lowers oil prices

Oil prices ticked lower in Asian trading on Tuesday after a Ukrainian drone attack on a Russian crude-pumping station disrupted supply from Kazakhstan, while reports that OPEC+ is considering delaying plans to restore output added to supply concerns.

The cautious sentiment was also attributable to renewed fears of oversupply amid prospects of a peace agreement between Russia and Ukraine.  

At 09:38 ET (02:38 GMT), Brent Oil Futures fell 0.2% to $75.10 per barrel, while Crude Oil WTI Futures expiring in March gained 0.7% to $71.17 per barrel.

The WTI crude oil contract did not close at its usual time on Monday as U.S. markets observed Presidents' Day, a federal holiday that typically affects trading schedules.

The market remained cautious ahead of fresh potential tariffs by U.S. President Donald Trump’s administration. 

The prospect of escalating trade tensions has raised concerns about a slowdown in global economic growth, which could weigh on oil demand. Analysts warned that additional tariffs could disrupt trade flows and dampen industrial activity, particularly in energy-intensive sectors.

The U.S. dollar also strengthened on Tuesday, reflecting safe-haven demand amid the trade uncertainty. A stronger dollar typically pressures oil prices, as it makes crude more expensive for holders of other currencies.

Markets were jittery in anticipation of a high-stakes meeting between U.S. President Donald Trump and his Russian counterpart in the coming days.

Analysts have pointed out that a peace agreement between Russia and Ukraine, along with a potential relaxation of sanctions on Russian energy, could impact global oil supply patterns. However, strong near-term demand signals have provided support for crude prices.