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  How Winter Storm Fern is Impacting Global Oil Markets

 Global oil prices continued their upward trajectory on Monday, building on a 2% gain from the previous session. The rise comes as a massive winter storm in the United States disrupts crude production, coupled with simmering geopolitical tensions between the U.S. and Iran.

File Photo | Reuters

Market Performance Brent crude futures edged up by 7 cents (0.1%) to reach $65.95 a barrel, while U.S. West Texas Intermediate (WTI) crude stood at $61.10 a barrel. Both benchmarks had already secured a 2.7% gain last week, marking their highest levels since mid-January.

Winter Storm 'Fern' Impacts Output The primary driver behind the current price hike is Winter Storm Fern, which has battered the U.S. coast. The extreme weather has forced significant "shut-ins" in major crude and natural gas-producing regions, putting immense stress on the American power grid.

According to analysts at JPMorgan, the harsh weather has resulted in a loss of approximately 250,000 barrels per day (bpd) of crude production. Key affected areas include:

• The Bakken field in Oklahoma.

• Major production zones in Texas.

"Oil markets are experiencing a mild upswing as outages tighten physical flows," noted Priyanka Sachdeva, a senior market analyst at Phillip Nova.

Geopolitical Risks and Supply Chains Beyond the weather, investors remain cautious due to ongoing geopolitical risks. Tensions between the U.S. and Iran continue to keep the markets on edge, adding a layer of uncertainty to global supply chains

Source: Reuters