Oil closes at highest level in 4 weeks, Brent exceeds $80

Oil drilling rigs

Oil closed positive today, Jan. 22, widening gains from last week amid fears of supply shortages due to geopolitical tensions, along with reduced production in North Dakota, US, due to the cold weather.

Brent crude for March delivery rose 1.9%, or $1.5, to settle at $80.06 per barrel—the highest level since Dec. 26, 2023—after falling to $77.81 during trading.

WTI crude for March delivery (the most active) climbed 2%, or $1.51, to $74.76 per barrel, after touching $72.56 during the session.

In a recent note, JP Morgan analysts said that based on their pricing model, there is likely no “geopolitical premium” in oil prices currently, adding that this reflects that the global impact caused by shipping disruptions in the Red Sea is likely to be small.

Russian crude oil exports were briefly halted on Jan. 21 after a drone attack on the Novatek plant caused a fire, but they resumed on Jan. 22, according to ship-tracking data compiled by Bloomberg.