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Global crude oil benchmarks saw a significant rise on Monday, November 18, driven by production disruptions at two key oil facilities. At the same time, a weakening US dollar also contributed to higher commodity prices by making dollar-denominated assets more affordable for global buyers.

Brent crude gained $2.26, or 3.2% to settle at  $73.30/barrel.

WTI rose by $2.14, or 3.2% to close at $69.16/barrel.

Due to maintenance work, Kazakhstan’s Tengiz oil field, operated by Chevron, reduced output by 28%-30%. Repairs are expected to be completed by November 23, 2024, temporarily restricting global availability. Additionally, Equinor’s Johan Sverdrup field, Western Europe’s largest oil producer, halted production following a power outage. While efforts to restart operations are ongoing, the timeline for resumption remains uncertain.

Geopolitical risks further amplified market concerns, as tensions in Eastern Europe heightened fears of potential attacks on Russian oil infrastructure, exacerbating supply risks.

Written by: Muhammad Hafiz