Oil prices climbed in Asian trading Wednesday, building on gains from the previous session. Extreme cold weather disrupted US crude production, contributing to tighter supply. Additionally, a weaker dollar boosted prices, reaching a near four-year low. West Texas Intermediate crude futures rose 0.2% to $62.53 a barrel, signaling investor confidence despite economic uncertainties.

The winter storm across the US severely impacted crude production. Gulf Coast exports also plummeted due to the storm's impact. These supply disruptions are leading traders to anticipate significant drawdowns in US oil inventories in the coming weeks. The American Petroleum Institute data showed an unexpected drop in US oil inventories last week, potentially signaling further price increases.

The weakening dollar further supported oil prices, making commodities priced in the greenback more attractive to buyers. Investors are also closely watching the Federal Reserve's interest rate decision. With the Fed expected to hold rates steady, attention is focused on Chair Jerome Powell's guidance for the year ahead, which could further influence market sentiment.