Oil prices increased in sluggish trade on Tuesday, owing to concerns about winter storms in the U.S. are disrupting logistics and shale oil production.
By 0120 GMT, Brent crude Oil prices had increased with 73 cents, or 0.9%, to $84.60 per barrel, but U.S. West Texas Intermediate crude had increased with 85 cents, or 1.1%, to $80.40 per barrel.
WTI climbed by 2.7% on Friday, while Brent increased 3.6%. The largest weekly rise for both benchmarks since October were noted. Due to the Christmas holiday, the British and United States markets were closed on Monday.
According to Kazuhiko Saito, The chief analyst of Fujitomi Securities Co Ltd. “Fears regarding supply disruption following winter storms in the U.S. drove purchasing. However activity was thin since many market participants went abroad on vacation.”
However, he added, “the U.S. weather is expected to better this week, so rally may not last too long.“
On Christmas Day in New York, Power cut off to thousands of homes, locking motorists and emergency personnel in their cars. And increasing the death to the toll from storms that have freezed much of the country for days.
As of Saturday afternoon, flights had cancelled over 2,700 U.S. flights after the weather caused chaos at airports around country.
On Friday, bitter cold and strong winds curtailed energy production across the country and caused power outages, raising the cost of electricity & heating.
The surge today was driven partly by worries over a gradual decrease in Russian production.
Russia may reduce oil output by 5% – 7% in early 2023 in response to price caps, News agency RIA said on cited Deputy PM Alexander Novak said on Friday.