Oil prices extend gains on Wednesday 

Oil prices rose further on Wednesday, extending gains of about 3 per cent from the previous session, as supply concerns persisted following weather-related disruptions in the United States and continued geopolitical tensions in the Middle East.

Brent crude edged up 11 cents, or 0.2 per cent, to $67.68 a barrel by 0725 GMT, while US West Texas Intermediate (WTI) gained 19 cents, or 0.3 per cent, to $62.58 a barrel.

US crude output losses were estimated at up to 2 million barrels per day over the weekend, equivalent to roughly 15 per cent of national production, after a winter storm strained energy infrastructure and power grids. Crude and liquefied natural gas exports from US Gulf Coast ports also fell to zero on Sunday, according to shipping data.

The rally was further supported by reduced production in Kazakhstan, where the Tengiz oilfield is expected to restore less than half of its normal output by February 7 following a fire and power outage. This offset indications from the Caspian Pipeline Consortium that full loading capacity had resumed at its Black Sea terminal after maintenance work.

Geopolitical risks added to market support as US military assets arrived in the Middle East, raising concerns over potential escalation involving Iran. At the same time, OPEC+ is widely expected to maintain its pause on output increases for March at its February 1 meeting.

Despite the near-term support, analysts continued to point to a projected global crude supply surplus this year, suggesting prices could face renewed pressure once immediate supply fears ease.

In the United States, market participants remained focused on inventory data. Industry figures showed mixed movements in stockpiles last week, with crude and gasoline inventories falling while distillate stocks rose, complicating the near term outlook for prices.

Attribution: Reuters