Oslo: Oil prices edged up today, extending the previous day’s rally driven by a halt in production at Norway’s Johan Sverdrup oilfield, though investors remained cautious amid fears of an escalation in the Russia-Ukraine war. Brent crude futures for January delivery rose 15 cents, or 0.2%, to $73.45 a barrel, while US West Texas Intermediate crude futures for December delivery were at $69.31 a barrel, up 15 cents, or 0.2%. The more active WTI January contract rose 13 cents, or 0.2%, to $69.30.

According to Oman News Agency, both benchmarks climbed more than $2 a barrel yesterday after Norway’s Equinor (EQNR.OL) announced it has halted output from its Johan Sverdrup oilfield, Western Europe’s largest, due to an onshore power outage. Work to restart production was underway, but it was not immediately clear when it would resume.

Additionally, Kazakhstan’s biggest oil field Tengiz, operated by US major Chevron (CVX.N), has reduced oil output by 28% to 30% due to repairs, helping to further tighten global suppli
es. This supply disruption has contributed to the upward pressure on oil prices, as the market responds to the reduced availability from these significant oil production sources.