Oil has gone up in light trading today, Tuesday, on concerns about the impact of winter storms in the US on logistics, oil production and shale oil.
By 01:22 GMT, i future on Brent crude oil rose 73 cents, or 0.9%, to $84.65 a barrel. THE future on West Texas Intermediate crude oil rose 85 cents, or 1.1%, to $80.41 a barrel.
Brent crude oil was up 3.6% on Friday, while WTI was up 2.7%. Both benchmarks posted their biggest weekly gains since October. The markets in Great Britain and the United States were closed on Monday due to the Christmas holidays.
Kazuhiko Saito, chief analyst at Fujitomi Securities, said: “Fears of supply disruption due to winter storms in the US prompted buying, although trading was thin as many market participants were in vacation”.
A massive blizzard hit Buffalo, New York on Christmas Day, stranding motorists and rescue crews, cutting power to thousands of homes, and adding to the death toll from the storms that engulfed the United States for days.
Concerns about possible cuts in Russian oil production also supported prices today.
Russia’s news agency quoted Russian Prime Minister Alexander Novak’s aide on Friday as saying Russia could cut oil production by between 75% in early 2023 in response to the imposition of a ceiling on oil prices by Western countries.
Read More About: Business News