Crude oil prices moved up sharply on Thursday as concerns about possible supply disruptions outweighed OPEC+’s decision to increase crude output in March.
Geopolitical concerns in Eastern Europe and the Middle East have raised concerns about supplies.
West Texas Intermediate Crude oil futures for March ended higher by $2.01 or about 2.3% at $90.27 a barrel, closing about the $90 a barrel mark for the first time since October 7, 2014.
WTI futures had dropped to $86.75 a barrel earlier in the session.
Brent crude futures moved up by about 1.7% to $91 a barrel.
An explosion that rocked an oil production vessel owned by Nigeria’s Shebah Exploration & Production Company is unlikely to any significantly impact output, as Nigeria has already been struggling to meet its production quota due to lack of investment.
In fact, several OPEC members are reportedly struggling to pump more oil despite prices soaring to seven-year highs.
Possibility of disruptions in crude supplies due to cold weather that is expected to hit the Central and the Northeast parts of the United States contributed as well to the uptick in oil prices.
Recent data from U.S. Energy Information Administration showing a drop in U.S. crude inventories last week too supported oil prices.
The Organization of the Petroleum Exporting Countries and allies, collectively known as OPEC+, agreed on Wednesday to stick to monthly increases of 400,000 barrels per day in oil output, shrugging of pressures from world’s top consumers to raise output more quickly.
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