Oil Holds Gains Amid Supply Concerns, Geopolitical Tensions
WTI crude oil futures traded above $69 per barrel on Tuesday, after surging 3.2% in the previous session, amid supply outage concerns and simmering geopolitical tensions.
Production at the Johan Sverdrup field in Norway, which has a capacity of up to 755,000 barrels of oil per day, was halted due to an onshore power outage. Additionally, the Chevron-led Tengiz venture in Kazakhstan reduced daily oil production by as much as 30% this month due to ongoing maintenance, further tightening global supplies.
Geopolitical risks also drove prices higher as tensions between Russia and Ukraine escalated after the US approved Ukraine's use of long-range US-made missiles inside of Russia, which could draw the US more directly into the conflict. Adding further support to oil prices was a weaker US dollar, which makes crude more attractive to foreign buyers.
Source: Trading Economics