Oil prices extended their gains on Wednesday as supply concerns persisted following a winter storm that disrupted U.S. crude production and exports. Ongoing tensions in the Middle East also provided additional support to prices.
Brent crude futures rose 11 cents, or 0.2%, to $67.68 a barrel by 07:25 GMT. U.S. West Texas Intermediate (WTI) crude gained 19 cents, or 0.3%, to $62.58 a barrel. Both benchmarks jumped around 3% in the previous session.
Analysts and traders estimate that U.S. producers lost up to 2 million barrels per day over the weekend, representing roughly 15% of total national output. The winter storm strained energy infrastructure and power grids, leading to widespread production disruptions.
Exports were also hit hard. Crude oil and liquefied natural gas shipments from U.S. Gulf Coast ports dropped to zero on Sunday, according to ship-tracking data from Vortexa.
Additional support for prices came from supply losses in Kazakhstan, according to Toshitaka Tazawa, an analyst at Fujitomi Securities. However, he warned that selling pressure could return once immediate supply fears begin to fade.
Tazawa added that despite geopolitical risks, including tensions in the Middle East, the market is still facing a projected global crude surplus this year. As a result, WTI prices may remain near the $60-per-barrel level in the near term.
Kazakhstan’s largest oilfield, Tengiz, is expected to restore less than half of its normal production by February 7 as it recovers from a fire and a power outage, sources familiar with the situation said.
That outlook partially offset comments from the Caspian Pipeline Consortium, which transports about 80% of Kazakhstan’s oil exports. The operator said it has returned to full loading capacity at its Black Sea terminal following maintenance at one of its mooring points.
Supply risks persist amid Middle East tensions
Geopolitical risks also remained in focus after a U.S. aircraft carrier and accompanying warships arrived in the Middle East, according to U.S. officials. The move strengthens President Donald Trump’s military posture in the region and raises the possibility of further action against Iran.
Analysts at ANZ said the deployment increased the likelihood that Trump could follow through on threats to target Iran’s senior leadership, particularly after reports of a violent crackdown on nationwide protests.
On the production front, OPEC+ is expected to maintain its pause on output increases for March. A decision is due at the group’s meeting on February 1, according to multiple delegates.
Inventory data also remained mixed. A Reuters poll showed U.S. crude oil and gasoline stockpiles were expected to rise in the week ended January 23, while distillate inventories were forecast to decline.
However, market sources citing figures from the American Petroleum Institute said crude and gasoline stocks actually fell last week, while distillate inventories increased.
