Key Moments
- Brent crude reached $67.95 a barrel and U.S. WTI $62.76, both trading at their highest levels since late September.
- Weakness in the U.S. dollar and weather-related supply disruptions in the United States and Kazakhstan supported prices.
- OPEC+ is expected to maintain its pause on output increases for March, while U.S. sanctions relief for Venezuela’s energy sector is under consideration.
Prices Touch Multi-Month Highs
Oil futures climbed on Wednesday to levels last seen in late September, supported by supply outages and currency moves.
At 1302 GMT, Brent crude futures were up 38 cents, or 0.6%, at $67.95 a barrel. U.S. West Texas Intermediate (WTI) crude gained 37 cents, also 0.6%, to trade at $62.76. Both contracts are on track for their largest monthly percentage gains since July 2023, with Brent poised for an increase of about 12% and WTI about 10%.
Both benchmarks had advanced by about 3% on Tuesday.
| Contract | Price at 1302 GMT | Move | Percentage Change | Approximate Monthly Change |
|---|---|---|---|---|
| Brent crude futures | $67.95 | +$0.38 | +0.6% | ~+12% |
| WTI crude futures | $62.76 | +$0.37 | +0.6% | ~+10% |
Currency Moves and Fed Decision in Focus
The U.S. dollar is trading near four-year lows against a basket of other major currencies. This weakness is making dollar-denominated commodities such as crude oil less expensive for holders of other currencies, adding support to prices.
The U.S. Federal Reserve is expected to leave interest rates unchanged, with its decision scheduled for release at 1900 GMT on Wednesday.
Weather-Driven Disruptions and Kazakh Supply
On the supply side, flows from U.S. Gulf Coast ports were severely affected by a major winter storm. Crude exports from the region fell to zero on Sunday before recovering on Monday, according to ship-tracking firm Vortexa.
Production issues in Kazakhstan are also contributing to the bullish tone. The OPEC+ member is aiming to restart output at the Tengiz field gradually within a week, although sources have indicated the process could take longer.
At the same time, pipeline operator CPC, which transports about 80% of Kazakhstan’s oil exports, has returned to full loading capacity at its Black Sea terminal after completing maintenance at a mooring point that had been hit by drones, according to sources.
OPEC+ Policy and Venezuela Sanctions
The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries, Russia and other partners, is expected to maintain its pause on production increases for March at a meeting on February 1, according to OPEC+ delegates.
In a separate development, U.S. officials are working on a general licence that would relax some sanctions on Venezuela’s energy industry, sources said. Any such move could add supply to the market and exert downward pressure on prices.
Geopolitical Tensions and Middle East Risk
U.S. officials told Reuters that a U.S. aircraft carrier and accompanying warships have arrived in the Middle East. They said the deployment enhances President Donald Trump’s ability to potentially take military action against Iran, heightening concerns about possible supply disruptions from OPEC’s fourth-largest crude producer.
Inventory Outlook and Upcoming Data
On the demand and inventory front, a Reuters poll indicated that U.S. crude oil and gasoline stocks were expected to have increased in the week ended January 23, while distillate inventories were projected to have fallen.
Official U.S. government inventory data is scheduled for release at 1530 GMT.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
