WTI crude oil rises amid global production uncertainty – London Business News | London Wallet

The price of West Texas Intermediate (WTI) crude oil reached the $72.80 per barrel range on February 19, 2025, closing around $72.05 per barrel. This increase marks its highest level since the previous week and reflects growing market concerns about oil supply. Factors driving this rise include drone attacks on oil infrastructure in Russia and adverse weather conditions in the United States.

Drone attacks have significantly impacted Russian oil production and exports, creating uncertainty in international markets. Russia is one of the world’s largest oil producers, and any disruption in its production can lead to fluctuations in global prices. The instability in the region has prompted investors to anticipate a potential supply reduction, driving crude prices higher.

In the United States, extreme weather conditions have also played a key role in the recent oil price increase. Due to heavy snowfall and freezing temperatures, production in North Dakota is estimated to decrease by up to 150,000 barrels per day. This supply reduction has raised concerns among market operators seeking price stability.

Additionally, the Organization of the Petroleum Exporting Countries (OPEC) and its allies have determined market trends. Speculation suggests they may delay the planned production increase for April, which would help sustain high prices. This strategy aims to balance supply and demand amid geopolitical and climatic uncertainty.

Another factor contributing to the WTI surge is the growing global energy demand. Despite economic challenges worldwide, many economies continue to show signs of recovery, driving oil consumption. Increased industrial activity and transportation have boosted the demand for fossil fuels, reinforcing the upward price trend.

Investors have also responded to these events with heightened financial speculation in the oil market. Market volatility has led to a higher volume of futures contract transactions, further contributing to price fluctuations. In this context, traders closely monitor any signs of changes in production policies among major exporting countries.

In conclusion, the rise in WTI crude prices is driven by geopolitical, climatic, and supply-and-demand factors. Uncertainty surrounding production in Russia and the U.S. and the possibility of OPEC maintaining supply restrictions have created a favorable environment for price increases. As these factors evolve, the oil market will remain a key point of interest for investors and analysts.