Oil Prices Climb on US Production Disruptions and Geopolitical Tensions

Oil markets opened the week with gains as winter storm Fern disrupted crude output in key US producing regions and geopolitical tensions with Iran resurfaced. Brent crude futures edged up 0.35% to $66.11 per barrel, while WTI ROSE 0.31% to $61.26, building on Friday's 2% rally.

The weather system forced shutdowns across Oklahoma and Texas energy infrastructure, knocking out approximately 250,000 barrels per day of production. Power grid strains compounded the supply disruptions in affected areas. Meanwhile, President Trump's announcement of US naval movements toward Iran reintroduced a geopolitical risk premium to crude markets.

Market participants now await signals from this week's Federal Reserve meeting, which could influence commodity prices through its impact on the US dollar and broader risk sentiment. The Caspian Pipeline Consortium's return to full capacity after maintenance provides some counterbalance to the bullish factors.