Global oil prices rose in American trade on Tuesday away from two-month lows on short-covering amid concerns about disruptions in Kazakhstan supplies. 

Traders are also closely following the peace talks aimed at ending the war in Ukraine, and undertaken by US and Russian officials in Saudi Arabia.

Prices

US crude futures rose 1.1% to $72.00 a barrel, with a session-low at $70.93. 

Brent added over 1% to $76.03 a barrel, with a session-low at $74.94.

On Monday, US crude rose 1.2%, while Brent added 1.0%, marking the second profit in three days and moving away from two-month lows.

Kazakh Supplies

A drone attack on southern Russia led to disruptions in Kazakh crude supplies to the global markets, and impeded exports. 

The attack reflects mounting tensions and concerns about the stability of global supplies, especially as these pipelines are highly vital to shifting oil from Central Asia to the European markets. 

A Russian official said a Ukrainian drone attacked a Russian pipeline that pumps 1% of global crude supplies.

The damage could reduce Kazakh oil supplies by 30% and could take two months to fix.

Peace Talks 

Peace talks between Russian and US officials commenced in Saudi Arabia, aimed at ending the war in Ukraine and reaching a compromise. 

A peace deal could lead the US to lift its sanctions on Russian energy exports and increase global supplies. 

Canada's consumer prices rose 1.9% y/y in January, matching estimates and up from 1.8% in the previous reading.

Core prices, excluding food and energy, rose 2.1%, above estimates of 2.0%, and up from 1.8% in the previous reading. 

Bitcoin fell on Tuesday on track for the third loss in a row amid risk aversion with US 10-year treasury yields rebounding. 

The world’s most valuable cryptocurrency is now seeking fair pricing through extensive exchanges between bulls and bears.

The Price

Bitcoin fell 0.75% at Bitstamp today to $95,101, with a session-high at $96,313.

Bitcoin lost 0.5% on Monday, the second such loss in a row.

Crypto Market Value 

The market value of cryptocurrencies fell over $80 billion on Tuesday to a total of $3.250 trillion.

US Yields

US 10-year treasury yields rose 0.9% today on track for the first profit in three days, moving away from week lows at 4.447%, underpinning the greenback.

Fed official Michelle Bowman said she wants more evidence that inflation is firmly heading downward before cutting rates once more, amid ongoing trade uncertainty.

According to the Fedwatch tool, the odds of a 0.25% Fed rate cut in March stood at just 2.5%.

Now investors await more remarks by Fed officials, and additional data before the March meeting to gather more clues.

Fair Pricing 

As usual, bitcoin is now in the process of tapering off its recent record highs and seeking a fair price through normal demand and supply processes. 

Bitcoin marked wild gains in recent months, with a 40% surge in November after Donald Trump’s US presidential victory, which eventually sent the price to near $110,000. 

The US dollar rose in European trade on Tuesday for the first time in four days, away from two-month lows, as US 10-year treasury yields rebounded. 

Investors await remarks by Fed officials this week to gather more clues about the path ahead for US interest rates.

The Index

The dollar index rose 0.3% to 107.05, with a session-low at 106.74. 

On Monday, the index fell 0.1% today, the third loss in a row, after plumbing two-month lows on Friday at 106.57 following weak US data.

US Yields

US 10-year treasury yields rose 0.9% today on track for the first profit in three days, moving away from week lows at 4.447%, underpinning the greenback.

Fed official Michelle Bowman said she wants more evidence that inflation is firmly heading downward before cutting rates once more, amid ongoing trade uncertainty.

According to the Fedwatch tool, the odds of a 0.25% Fed rate cut in March stood at just 2.5%.

Now investors await more remarks by Fed officials, and additional data before the March meeting to gather more clues.