Oil Daily | Kazakhstan Cuts Caspian Pipeline Flows by 70% Amid OPEC Quota Compliance

【Oil-Producing Countries Dynamics】 Kazakhstan plans to cut oil flow through the Caspian Pipeline Consortium by 70% this month, a move aligned with OPEC quotas. Despite previous overproduction, Kazakhstan aims to produce 1.5 million barrels daily. The pipeline, crucial for Kazakh exports, faced a brief disruption last month following a Ukrainian attack.

【Others】 Russian soldiers reportedly used a pipeline to launch an attack on Ukrainian forces in Kursk, Russia. The pipeline, previously used for gas transport to Europe, is no longer in operation following Ukraine's contract refusal with Gazprom. Despite efforts to reduce reliance, European imports of Russian LNG hit a record high last year.

【Others】 Natural gas imports from Russia into Europe increased to 16.5 million tons last year, a surprising trend amidst European efforts to reduce reliance on Russian energy. Analyst Ana Maria Jaller-Makarewicz noted this increase contradicts the goal to diminish Russian LNG imports.

【Latest Oil Policies】 Saudi Arabia cut oil prices amid market concerns, contributing to a bearish sentiment. The move follows increased OPEC supply and demand uncertainties due to factors like US-Russia sanctions and China's declining oil imports. Analysts project support for oil prices before a potential recovery.

【Global Oil Supply and Demand】 China's consumer inflation data fell below zero in February for the first time in over a year, suggesting weak consumption and negatively impacting oil demand. This development further influences the already cautious outlook on global oil supply and demand dynamics.