Oil prices surged over 1% amid cold weather and Russian supply concern
Extreme winter conditions pose risks of disrupting oil production, as freezing temperatures may lead to temporary freeze-offs and production cuts, while simultaneously boosting fuel demand.
Oil prices rose by more than 1% on Thursday, driven by severe cold weather across parts of the United States and Europe, along with mounting concerns over the impact on Russian oil supply.
Brent crude increased by 76 cents and settled at $76.92/barrel.
WTI rose by 60 cents and closed at $73.92/barrel.
According to a report from the US National Weather Service on Thursday, January 10, a winter storm warning was issued from eastern Texas to western Virginia. Extreme winter conditions pose risks of disrupting oil production, as freezing temperatures may lead to temporary freeze-offs and production cuts, while simultaneously boosting fuel demand.
Adding to the bullish sentiment, supply concerns intensified following a sharp decline in Russian seaborne oil exports, which have dropped to their lowest levels since August 2023. In response, Indian refiners have reportedly shifted their focus to sourcing crude from the Middle East after failing to secure the desired volumes of Russian crude.
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Written by: Muhammad Hafiz