By Sudarshan Varadhan
SINGAPORE, Feb 27 (Reuters) - Oil was little changed in
early trade on Monday, as Russia's plans to deepen oil supply
cuts continued to support prices, while increasing global
inflation risks and rising crude inventories in the United
States weighed.
West Texas Intermediate U.S. crude futures (WTI) was
trading at $76.36 a barrel, 4 cents, or 0.05% higher, while
Brent crude futures was down 2 cents, or 0.02%, at
$83.14 a barrel at 0114 GMT.
Russia plans to cut oil exports from its western ports by up
to 25% in March versus February, exceeding its previously
announced production cuts of 5% of its output during the month.
Despite oil inventories in the United States at their
highest since May 2021, the U.S. Federal Reserve meeting
signalling further monetary tightening and a strong rally in the
dollar last week, prices edged higher early on Monday before
paring some gains.
"Oil looks like it wants to stay in a trading range until we
have a clearer outlook with China's COVID reopening and on how
bad of a recession the Fed will induce for the U.S. economy,"
said Edward Moya, an analyst at OANDA.
Oil prices have fallen by about a sixth in the year since
Feb. 24, 2022, when Russian troops first marched into Ukraine.
In its latest move, Russia has halted supplies of oil to
Poland via the Druzhba pipeline, the chief executive of Polish
refiner PKN Orlen said on Saturday, a day after Poland
delivered its first Leopard tanks to Ukraine.
Two weeks after the invasion, prices surged to a record high
of nearly $128 a barrel over supply concerns, but have since
cooled over fears of a global economic slowdown.
"China's manufacturing PMI data for February will be key to
steering the oil prices for this week. A rebound in Chinese
economic data will boost sentiment and improve the demand
outlook," said Tina Teng, an analyst at CMC Markets.
(Reporting by Sudarshan Varadhan)
Twitter: @sudvaradhan;))
