Brent inches up on renewed supply disruptions
The front-month ICE Brent contract has inched $0.08/bbl up on the day, to trade at $63.76/bbl at 09.00 GMT.
IMAGE: Oil storage tanks. Getty Images
Upward pressure:
Renewed supply disruption issues have supported Brent’s price gains today.
OPEC member Kazakhstan’s largest oil producer has halted production at the Tengiz and Korolevskoye fields, as precautionary measures, after two fires broke out at power generators, Reuters reported.
The Tengiz oilfield is expected to remain shut for at least 10 days, the report added. The closure is expected to cut crude oil exports via the Caspian Pipeline Consortium (CTC).
“This [production halt] comes after Kazakhstan reduced oil production after drone strikes affected the Caspian Pipeline Consortium’s shipping terminal in Russia, which is the outlet for about 80% of Kazak exports,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
The OPEC producer’s crude production in the first 12 days of January was down by almost 35% from average daily output in December 2025, according to Reuters.
Downward pressure:
Brent crude has come under some downward pressure as renewed trade tensions between the US and Europe weighed on market sentiment.
US President Donald Trump has threatened to impose 10% tariffs on several European countries from 1 February, after they opposed US' control of Greenland.
Washington would raise the levy to 25% from 1 June, unless an agreement is reached on what he described as the “complete and total purchase of Greenland” by the US.
Analysts caution that an escalation in trade barriers could undermine global economic growth, weakening oil demand and adding further downside pressure to prices.
By Aparupa Mazumder
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