FX.co ★ Oil Holds Near Four-Month High

On Wednesday, WTI crude oil futures maintained a position above $62 per barrel, following a nearly 3% increase in the prior session. This recent boost has elevated prices to their highest level in nearly four months, primarily due to disruptions in supply. A severe winter storm significantly reduced US crude production by an estimated 2 million barrels per day, which accounts for about 15% of the nation’s output, and temporarily suspended exports from the Gulf Coast as energy infrastructure and power grids were heavily affected. The continuation of icy and wet conditions in certain Southern regions is anticipated to hinder the resumption of operations. Market participants are also closely monitoring the US military's intensifying presence in the Middle East and the increased risk of potential action against Iran. Further support for oil prices came with the American Petroleum Institute's data, which revealed a decline of 0.25 million barrels in US crude inventories last week, contrary to the forecasted increase of 1.45 million barrels. Concurrently, the US dollar fell to its lowest point in nearly four years, enhancing the attractiveness of dollar-denominated commodities for purchasers.