RoydadNaft –  Oil prices edged slightly higher on Monday, following a more than 2% increase in the previous session. The gains were driven by production disruptions in key U.S. crude-producing regions and ongoing tensions between the United States and Iran.

According to Roydad Naft, Brent crude futures rose 23 cents, or 0.4%, to $66.11 per barrel (as of 0905 GMT). U.S. West Texas Intermediate crude also climbed 19 cents, or 0.3%, to $61.26 per barrel.

Both benchmarks posted a 2.7% gain over the past week and closed at their highest levels since January 14 on Friday.

Priyanka Sachdeva, senior market analyst at Phillip Nova, said: “Winter Storm Fern slammed into U.S. coasts, causing shutdowns in major crude oil and natural gas production areas and putting additional strain on the power grid.” She added that the oil market is experiencing a mild uptick as these shutdowns restrict physical flows.

J.P. Morgan analysts noted in a Monday report that roughly 250,000 barrels per day of U.S. crude production have been lost due to severe weather, including reductions in the Bakken field in North Dakota and parts of Texas.

Traders remain cautious over geopolitical risks, as tensions between the United States and Iran continue to worry investors.

Last week, U.S. President Donald Trump announced that an American carrier strike group is heading toward Iran but expressed hope that it would not need to be used, while reiterating warnings to Tehran against killing protesters or resuming its nuclear program.

A research note from SEB on Monday stated: “The unusually cold winter weather in the U.S., with higher demand for heating oil and the potential for U.S. oil supply disruptions, was likely part of the bullish driver at the end of last week, but America’s threats against Iran—accompanied by the deployment of the USS Abraham Lincoln to the Middle East—are probably the more significant factor.”

On Friday, a senior Iranian official said that Iran would consider any attack a “full-scale war against us.”

In separate news, the Caspian Pipeline Consortium (CPC) announced that it returned to full loading capacity at its Black Sea coastal terminal on Sunday after completing repairs at one of its three mooring points.

Additionally, Tengizchevroil, which operates the giant Tengiz oil field in Kazakhstan, stated on Monday that it has gradually resumed production following a prolonged shutdown.