Oil Prices Rise as Markets Weigh Impact of US Weather and Dollar Weakening
Oil prices edged higher as the market weighed two competing potential pitfalls: extreme cold weather in the US disrupting refineries and signs of a renewed easing of global supply. The weakening US dollar also fueled the market, as commodities became more attractive when the greenback fell.
In the US, a winter storm disrupted some Gulf Coast refineries and disrupted domestic production. However, the market viewed the impact as likely temporary, more of a logistical and operational disruption than a permanent shift in demand.
Meanwhile, the supply narrative from Kazakhstan is improving. The CPC export terminal in the Black Sea is back to full operation, and preparations are underway to restart the large Tengiz field—this has eased concerns about supply shortages somewhat.
Geopolitical tensions remain a factor in the market's unsettledness. The US is increasing military assets in the Middle East, and Trump has again mentioned an "armada" heading to the region—making the risk of Iran still factored into prices.
Behind the scenes, OPEC+ is scheduled to meet later this week, and the market widely expects them to maintain production increases for next month. This means that price direction is still "duel": storms and geopolitics hold back downside, but supply (Kazakh + potentially Venezuelan) limits upside.
Prices:
March WTI oil: up 1.4% to $61.47/barrel
March Brent oil: up 1.3% to $66.45/barrel.
Source: Newsmaker.id
