Oil prices increase following supply disruptions at Norway’s Johan Sverdrup oil field
Date
11/20/2024 1:09:51 AM
(MENAFN) Oil prices increased on Tuesday following supply disruptions at Norway’s Johan Sverdrup oil field, the largest in Western Europe, while market sentiment remained cautious due to escalating tensions in the Russia-Ukraine conflict.
Brent crude for January delivery gained 15 cents, or 0.2%, reaching $73.45 per barrel by 04:30 GMT. U.S. crude for December delivery also rose by 0.2%, settling at $69.31 per barrel.
Norwegian energy company Equinor announced that production at the Johan Sverdrup field was temporarily halted due to power outages. While the company confirmed efforts to restore operations, it did not provide a timeline for resumption. Additionally, Kazakhstan’s Tengiz oil field, the country’s largest, cut output by 28-30% for maintenance, with repairs expected to conclude by Saturday, according to Chevron.
Market fears heightened following a shift in U.S. policy allowing Ukraine to use long-range missiles against Russian targets, which prompted large-scale Russian strikes on Ukraine's energy infrastructure. The Kremlin warned that this development could provoke direct confrontation with NATO, adding to geopolitical uncertainties that are pressuring oil prices.
As December WTI contracts near expiration on Wednesday, traders are transitioning to January contracts, marking the return of "Contango" for the first time since February, signaling a slight easing in short-term supply concerns.
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