Oil rises after Kazakhstan and Russia’s exports were disrupted by a storm

Oil prices rose on Wednesday after a storm in the Black Sea region disrupted Kazakhstan and Russia’s crude exports, raising fears of supply shortages as investors awaited a decisive decision from the OPEC+ alliance that could increase or extend production cuts.

By 0127 GMT, Brent crude futures rose 33 cents, or 0.4 percent, to $82.01 per barrel. US West Texas Intermediate crude futures rose 45 cents, or 0.6 percent, to $76.86 per barrel.

The two benchmarks rose about 2 percent on Tuesday thanks to the possibility of the OPEC+ alliance, which consists of the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, extending or increasing supply cuts, as well as concerns about oil production in Kazakhstan and the weakness of the dollar.

A severe storm in the Black Sea region disrupted up to two million barrels per day of oil exports from Kazakhstan and Russia, according to government officials and shipping data.

Kazakhstan’s Energy Ministry said the country’s largest oil fields had reduced daily oil production by 56 percent as of November 27.

OPEC+ is scheduled to hold an online ministerial meeting on Thursday to discuss production targets for 2024, after being postponed from November 26.

Four OPEC+ sources said that the talks will be difficult and it is possible to extend the previous agreement instead of deeper cuts in production.

Oil also received support from the weakness of the dollar and the decline in US crude inventories.

The dollar fell near its lowest levels in three months against other major currencies on Wednesday as expectations grew that the Federal Reserve could begin cutting interest rates early next year.

A weak dollar usually supports oil prices because it makes it cheaper for holders of other currencies.

Meanwhile, US crude oil inventories fell by 817,000 barrels last week, according to market sources citing American Petroleum Institute figures.

Eight analysts polled by Reuters estimated that crude inventories fell on average by about 900,000 barrels in the week ending November 24.

The US government is scheduled to release weekly data on inventories later on Wednesday.