Oil prices climbed to their highest level since late September on Wednesday, supported by supply disruptions in the United States, a weaker U.S. dollar, and ongoing outages in Kazakhstan.
Brent crude futures rose 92 cents, or 1.4%, to $68.49 a barrel by 14:03 GMT. U.S. West Texas Intermediate (WTI) crude gained $1.04, or 1.7%, to $63.43 a barrel. Both benchmarks are on track for their largest monthly percentage gains since July 2023, with Brent up about 12% and WTI roughly 10%. Prices had already advanced around 3% in the previous session.
The rally has been reinforced by continued weakness in the U.S. dollar, which is hovering near four-year lows against a basket of major currencies. A softer dollar tends to support oil prices by making dollar-denominated commodities cheaper for buyers using other currencies. Markets are also watching the Federal Reserve, which is widely expected to keep interest rates unchanged at its policy announcement later on Wednesday.
On the supply side, U.S. crude exports from Gulf Coast ports briefly fell to zero on Sunday before rebounding on Monday after a severe winter storm disrupted operations, according to ship-tracking firm Vortexa.
Kazakhstan supply gradually recovering
Lost output in Kazakhstan continues to underpin prices, although the OPEC+ producer hopes production at the Tengiz oil field will resume gradually within a week. Market sources have cautioned that a full recovery could take longer. Pipeline operator CPC, which handles around 80% of Kazakhstan’s oil exports, has restored full loading capacity at its Black Sea terminal following maintenance.
Meanwhile, the OPEC+ group is expected to maintain its pause on output increases for March when it meets on February 1, according to delegates.
Elsewhere, U.S. officials are reportedly working on a general licence that could ease some sanctions on Venezuela’s energy sector, a move that could add supply and weigh on prices. At the same time, geopolitical risks remain elevated after a U.S. aircraft carrier strike group arrived in the Middle East, raising concerns over potential supply disruptions involving Iran. President Donald Trump warned Tehran to return to nuclear talks or face harsher consequences.
On the demand front, a Reuters poll showed that U.S. crude oil and gasoline inventories are expected to have increased in the week ended January 23, while distillate stockpiles likely declined.
