Brent crude oil futures traded above $73 per barrel on Tuesday, following a 3.2% surge in the previous session, driven by concerns over supply disruptions and escalating geopolitical tensions.
Production at Norway's Johan Sverdrup field, Western Europe's largest oil field with a capacity of up to 755,000 barrels per day, was halted due to an onshore power outage. Additionally, Kazakhstan's largest oil field, Tengiz, operated by Chevron, has reduced production by up to 30% due to ongoing maintenance, further tightening global oil supplies.
Tensions boost the prices
Repairs at Tengiz are expected to be completed by Saturday. Geopolitical risks also contributed to the price rise, as tensions between Russia and Ukraine escalated after the US approved Ukraine's use of long-range, US-made missiles inside Russia, raising the possibility of deeper US involvement in the conflict. Supporting oil prices further was a weaker US dollar, which makes crude more affordable for foreign buyers.
