Oil prices climb on concerns over production cuts by Russia and U.S. storm impact

Oil prices rose on Tuesday amid market concerns over adverse weather conditions in the U.S. This may have a negative impact on the supply chain, as well as on the production of petroleum products and shale oil. 

Kazuhiko Saito, a senior analyst at Fujitomi Securities Co Ltd. said the U.S. weather conditions are likely to get better, suggesting a short-lived rally in the oil market.

Airlines across the country canceled more than 2,700 flights on Saturday as weather continued to be inclement. 

Earlier, a cold snap knocked out several households and reduced electricity production throughout the United States. This led to higher prices for heating and, as a result, for electricity.

Fears over potential cuts in oil production by Russia could also be seen as a reason for the recent rally in the market.

Due to the introduction of a price cap on oil, Russia may reduce fuel production by 5-7% at the beginning of next year. This is reported by the RIA news with reference to the Deputy Prime Minister of the Russian Federation Alexander Novak.