Brent exceeded $92 per barrel for the first time since 2014

On Friday, Brent crude oil prices rose rapidly to the level of $92.45 per barrel, breaking the level of $92 for the first time since 2014. The quotes of North American WTI oil rose to the level of $91.50 per barrel. 

The main driver of growth was the news about severe frosts in Texas, which could have a negative impact on the oil and gas infrastructure of the region and lead to supply disruptions. In addition, cold weather can lead to increased fuel consumption.

Additional support for the oil market this week was provided by statistics on raw materials stocks in the United States from the Ministry of Energy of the country. Oil reserves decreased by 1 million barrels, distillate reserves – by 2.4 million barrels, but gasoline reserves increased by 2.1 million barrels. Production decreased for the second week in a row and amounted to 11.5 million b/d against 11.8 million b/d at the beginning of the year. This has become another factor for the growth of oil prices. 

But the positive circumstances for the oil market do not end there either. Fears of insufficient supply against the background of geopolitical tensions in Eastern Europe and the Middle East, as well as the fact that many OPEC+ countries have not yet been able to increase production to the agreed level, contribute to the growth.

Earlier this week, OPEC+ decided to continue increasing oil production by 400 thousand barrels per day per month.