Oil prices rose on Wednesday amid supply concerns following a storm that disrupted US crude oil production and exports
Oil prices surged further on Wednesday as supply concerns and tensions in the Middle East were fueled by a winter storm that disrupted US crude oil production and exports.
Brent crude futures rose 28 cents, or 0.4%, to $67.85 a barrel as of 04:10 GMT, while WTI crude rose 35 cents, or 0.6%, to $62.74 a barrel.
Both indicators had risen by approximately 3% on Tuesday.
The storm strained energy infrastructure and power grids, with estimates suggesting US producers lost up to 2 million barrels per day over the weekend, or about 15% of national production.
Data shows that crude oil and liquefied natural gas exports from the US Gulf Coast ports fell to zero on Sunday.
Production losses in Kazakhstan are also said to have supported the rise. However, selling pressure is likely to return once supply concerns ease.
Furthermore, the expected surplus in global crude oil supply this year due to geopolitical risks, including tensions in the Middle East, is likely to keep WTI trading around $60 a barrel for now.
According to two sources familiar with the matter, Kazakhstan’s largest oil field, Tengiz, is slowly recovering from fire and power outages and may regain less than half of its normal production by February 7.
This counters statements from CPC, the pipeline operator that handles about 80% of Kazakhstan’s oil exports, that it has returned to full loading capacity at its Black Sea terminal after completing its work.
Meanwhile, a US aircraft carrier and supporting warships have arrived in the Middle East, enhancing Trump’s ability to defend US bases or potentially launch military operations against Iran.
On the supply side, the Organization of Petroleum Exporting Countries (OPEC+) and Russia, along with other allies, are preparing to maintain their decision to pause oil production increases for March at their meeting on February 1.
According to a survey, US crude oil and gasoline inventories were expected to rise in the week ending January 23, while distillate fuel inventories were likely to fall.
However, according to market sources on Tuesday, citing data from the American Petroleum Institute (API), US crude oil and gasoline inventories fell last week, while distillate fuel inventories increased.
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