US oil crossed $90/bbl for the first time since 2014 as concerns mount over increasing demand versus constrained supply

The US WTI oil price crossed $90/bbl for the first time since 2014 amid growing concerns over extended winter storms across the United States, further stirring fears of crude shortages amid global constrained supply.

West Texas Intermediate crude settled at $91.72/bbl, while Brent crude traded at $92.43/bbl on Friday, February 4.

According to a report from S&P Global Platts, oil prices were pushed to new highs as media reports circulated claiming that a few Permian basin producers had shut operations on February 3 due to the frigid weather across the US.

“WTI crude surged over the $90/bbl level after an arctic blast made its way to Texas and disrupted some oil production in the Permian Basin,” Ed Moya, senior market analyst at OANDA told S&P.

Moya added: “The oil market is too tight and vulnerable to any shock. Even as thousands of flights are cancelled, the energy market is fixated [on] production and not so much short-term demand shocks.”

source : https://www.oilandgasmiddleeast.com/