Oil soars 3% amid US output disruptions

Oil drilling rigs

Oil prices rose at the close of trading today, Jan. 27, as US production affected by the severe winter storm that hit several states since the end of last week. A weaker dollar also weighed on oil prices.

Brent crude futures for March delivery rose 3%, or $1.98, to $67.57 a barrel. WTI crude oil futures for March delivery also rose by 2.90%, or $1.76, to $62.39 a barrel.

Estimates and analyses showed that US oil production fell by 15%, or two million barrels per day, over the past weekend, as wells and infrastructure froze due to the winter storm, Reuters reported.

On another note, informed sources told the agency that the Tengiz oil field, the largest in Kazakhstan, may recover less than half of its normal production level by Feb. 7, after being disrupted by a problem with the electricity supply.

Oil prices received additional support from rising geopolitical tensions, with the US directing a fleet towards Iran and an American aircraft carrier and support ships arriving in the Middle East.