(MENAFN) Oil prices experienced a significant surge on Wednesday, driven by disruptions in crude exports from Kazakhstan and Russia due to a powerful storm in the Black Sea region. Concerns over potential supply shortages intensified as the two nations, major players in the global oil market, faced production challenges.
As of 0127 GMT, Brent crude futures climbed by 0.4 percent to USD82.01 per barrel, while US West Texas Intermediate crude futures saw a 0.6 percent increase, reaching USD76.86 per barrel. The previous day witnessed a two percent rise in both benchmarks, fueled by speculations about the OPEC+ alliance's upcoming decision on production cuts.
The OPEC+ alliance, comprised of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members like Russia, is set to convene an online ministerial meeting on Thursday to deliberate on production targets for 2024. Originally scheduled for November 26, the meeting was postponed, heightening anticipation in the oil market.
Government officials and shipping data revealed that the Black Sea storm disrupted up to two million barrels per day of oil exports from Kazakhstan and Russia. The Kazakh Ministry of Energy reported a 56 percent reduction in daily oil production from the country's largest oil fields as of November 27.
The market is closely monitoring the OPEC+ discussions, with four sources indicating the potential for challenging talks. There is speculation that, instead of deeper production cuts, the alliance may opt to extend the existing agreement. The uncertainty surrounding the decision, coupled with supply disruptions, has fueled the recent upward trajectory in oil prices.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.