Oil prices hover around four-month high
Oil prices hit their highest since late September on Wednesday after a winter storm disrupted U.S. crude output while a weak U.S. dollar and continued Kazakh outages lent further support.
At 1403 GMT, Brent crude futures had ticked up 92 cents, or around 1.4%, to $68.49 a barrel. U.S. West Texas Intermediate crude was up $1.04, or around 1.7%, at $63.43. Both grades are headed for their biggest monthly rises in percentage terms since July 2023, with Brent set to rise around 12% and WTI around 10%.
The U.S. dollar is hovering near four-year lows against a basket of other currencies, reflecting weakness that makes dollar-denominated commodities such as oil cheaper for those holding other currencies. The U.S. Federal Reserve is expected to hold interest rates steady with Wednesday’s decision slated to be announced at 1900 GMT.
On the supply side, exports of crude oil from U.S. Gulf Coast ports tumbled to zero on Sunday before rebounding on Monday, after a massive winter storm swept across the country, ship-tracking service Vortexa said.
On the supply side, the OPEC+ group comprising the Organization of the Petroleum Exporting Countries, Russia and other allies is set to keep its pause on oil output increases for March at a meeting on February 1, OPEC+ delegates said.
Elsewhere, U.S. officials are working to issue a general licence that would lift some sanctions on Venezuela’s energy sector, sources said, which could weigh on prices.
Source: Reuters.com
