"Oil prices saw a pause in their rebound today after rallying around 3% in the previous session to their strongest levels in roughly four months. Near-term supply fears still support the tone, but gains could be limited while the oversupply narrative remains a headwind over the long term. Additionally, as the US moves to lift sanctions on the Venezuelan energy sector, the market could see a stronger potential for more volume, weighing on prices to a certain extent."
"Disruptions from the cold weather in the US could continue to affect the market. Freezing conditions and storm damage forced temporary shut-ins and disrupted oil flows, tightening near-term supply expectations. Estimates suggest output losses reached up to 2 million barrels per day, or about 15% of total U.S. production, fuelling caution over availability over the next few sessions. Additionally, production recovery in the Tengiz field in Kazakhstan could remain limited, leaving volumes below expectations."
Oil prices paused their rebound after rallying about 3% to four-month highs. Near-term supply fears support the market tone, but an existing oversupply narrative limits prospective gains over the long term. The US move to lift sanctions on Venezuela's energy sector could add volumes and exert downward pressure on prices. Cold weather in the US caused freezing conditions and storm damage that forced temporary shut-ins and disrupted oil flows, tightening near-term supply expectations. Estimates indicate output losses up to 2 million barrels per day, roughly 15% of US production. Production recovery at Kazakhstan's Tengiz field may remain limited, and Middle East geopolitical risks continue to pose caution.
Read at London Business News | Londonlovesbusiness.com
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