Brent Crude Holds Above $67 Amid Supply Disruptions and Geopolitical Risks

New York | EcoPulse24

Crude oil futures maintained elevated trading ranges, with West Texas Intermediate (WTI) holding above $62 per barrel and Brent crude above $67. This was driven by sudden supply disruptions and rising geopolitical risks, further supported by a weakening US dollar.

WTI settled above $62 per barrel after nearly 3% gains in the previous session, marking a four-month high. The recent rally stemmed from supply outages rather than improved demand. A severe winter storm slashed US output by as much as two million barrels per day - around 15% of national production - and temporarily halted Gulf Coast exports due to strain on energy infrastructure and power grids. Ongoing icy and wet conditions in southern states are expected to delay a full production recovery.

Brent crude also traded above $67 per barrel after a similar 3% rise, reaching its highest level in about four months, influenced by the same supply and geopolitical factors impacting WTI.

Industry data from the American Petroleum Institute showed US crude inventories unexpectedly fell by 0.25 million barrels last week, contrary to market expectations of a 1.45 million barrel increase. The US dollar's drop to its lowest in nearly four years also enhanced the appeal of dollar-denominated commodities for international buyers.

EcoPulse24 Analysis:
The primary driver for oil prices in this scenario is supply-side factors, not demand, with a clear overlap of weather shocks in the US and geopolitical risks in the Middle East. While a weaker dollar amplifies price moves, it is not the core driver. Price stability at these levels will depend on how quickly US production and exports recover, alongside evolving geopolitical risks, keeping the market highly sensitive to new developments.