Due to a weaker dollar and possible supply interruptions, oil prices rise

Oil prices climbed in early Asian trade on Thursday due to supply concerns and a potential rail shutdown in the United States, the largest petroleum consumer in the world.

Brent crude prices rose 38 cents, or 0.4%, to $94.48 a barrel as of 00:13 GMT, while U.S. West Texas Intermediate crude futures rose 46 cents, or 0.5%, to $88.94 per barrel.

The dollar index lost 0.14 percent on Wednesday, erasing the previous session's gains and increasing demand for dollar-denominated commodities such as crude oil among holders of other currencies.

The International Energy Agency (IEA) announced on Wednesday that it expected a large-scale switch from natural gas to oil for heating purposes, forecasting an average of 700,000 barrels per day (bpd) between October 2022 and March 2023 - double the amount of the previous year. This, together with the widespread expectation of a sluggish expansion in supply, also contributed to the market's increase.

The greater possibility of a U.S. rail shutdown due to an ongoing labor dispute also helps to market support. Three unions are negotiating a new contract that might hinder crucial oil and product train shipments.

Wednesday, TotalEnergies SE cut output at its 238,000-barrel-per-day (bpd) Port Arthur, Texas, refinery owing to the anticipated shutdown of two sulfur recovery units, according to sources familiar with plant operations (SRUs).