Oil prices climb after US snowstorm — Reuters
Photo: Oil prices rise due to snowstorm in the US (Getty Images)
On Wednesday, January 28, global oil prices continue to rise. The reason is concerns about supplies after a winter storm disrupted crude oil production and exports in the US, Reuters reports.
Price
Brent crude futures rose 0.4% to $67.85 per barrel. US WTI crude added 0.6% to $62.74. This is a continuation of yesterday's trend, when both indicators jumped 3% at once.
What pressures price
The winter storm has put a strain on the energy infrastructure and power grids in the US.
According to analysts and traders, US producers lost up to 2 million barrels per day, or about 15% of national production, over the weekend due to the bad weather.
Exports of crude oil and liquefied natural gas from ports on the US Gulf Coast fell to zero on Sunday.
At the same time, Kazakhstan's largest oil field, Tengiz, is only gradually recovering from a fire and power problems.
The facility is expected to operate at less than half capacity until at least February 7.
In addition, the situation in the Middle East is putting additional pressure on prices. The arrival of a US aircraft carrier in the region has heightened fears of a possible US military response to Iran's actions.
According to analysts, this increases the likelihood of Donald Trump's threats to strike the Iranian leadership, which will inevitably lead to disruptions in oil supplies from the region.
Analysts' forecasts
Despite the current growth, experts warn against excessive optimism. It is expected that at the meeting on February 1, OPEC+ will continue to pause production increases in March.
According to his forecast, the global oil surplus this year could stabilize the price of WTI at around $60 per barrel once logistical and weather problems are resolved.
Price fluctuations
On January 22, prices for Russia's flagship Urals crude oil, which China buys, fell to unprecedented lows as demand from India declined and competition fell as a result.
On January 23, global oil prices began to rise amid a weak dollar (the lowest rate in the last seven months).
On January 24, oil ended the week with a decline in prices due to Trump's energy policy. Traders expect prices to fluctuate between $76.50 and $78 per barrel.
