Brent gains on supply disruption concerns
The front-month ICE Brent contract has moved $2.50/bbl higher on the day, to trade at $67.77/bbl at 09.00 GMT.
IMAGE: Oil storage tanks. Getty Images
Upward pressure:
US crude oil production and exports have been majorly disrupted this week due to harsh winter storms. This has supported Brent’s price.
US refiners have lost 2 million b/d, or about 15% of the country's total output over the weekend, Reuters reported.
“A winter storm in the US has disrupted refineries on the Gulf Coast and elsewhere,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
Meanwhile, a weaker US dollar has lent further support. The dollar is trading close to a four-year low against major currencies, Reuters reported.
This slide is making dollar-priced commodities such as crude oil more affordable for holders of other currencies.
Downward pressure:
Brent crude has felt some downward pressure after Kazakhstan said that output at the Tengiz oilfield – one of the OPEC+ member’s largest crude oil production sites – will resume full production within a week, according to Reuters.
“Kazakhstan’s oil output is set to recover, with Tengizchevroil restoring power to its Tengiz field,” two analysts from ING Bank said.
Besides, Kazakhstan’s pipeline operator Caspian Pipeline Consortium (CPC) said it has restored full loading capacity at its Black Sea terminal after completing maintenance work at one of its three mooring points that was hit by Ukrainian drones.
By Aparupa Mazumder
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