Oil prices rise on global markets: key factors driving price growth
28 January 10:12
Global oil prices continued to rise on Wednesday, January 28, due to concerns about supplies after a winter storm disrupted crude oil production and exports in the United States. At the same time, tensions in the Middle East provided additional support.
This was reported by "Komersant Ukrainian" with reference to Reuters.
As of Wednesday morning, Brent crude oil futures rose 0.4% to $67.85 per barrel. US WTI crude oil added 0.6%, rising to $62.74. This is a continuation of yesterday’s trend, when both indicators jumped 3% at once.
Collapse of production in the US
The winter storm in the US dealt a devastating blow to the energy system. According to traders’ estimates, US producers lost up to 2 million barrels per day, which is about 15% of total national production.
The situation in the ports of the Gulf of Mexico was critical: exports of crude oil and LNG 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.
Additional pressure on prices
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.
ANZ analysts note that 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.
