Oil Prices Ease as Kazakhstan Supply Resumes, U.S. Winter Storm Limits Losses

PUKMEDIA

Oil field.

Oil prices edged lower on Tuesday as investors monitored a potential resumption of supply from Kazakhstan, although losses were limited by severe winter weather disrupting crude production and refinery operations along the U.S. Gulf Coast.

According to Reuters, Brent crude futures fell by 44 cents, or 0.7 per cent, to USD 65.15 per barrel by 04:40 GMT. U.S. West Texas Intermediate (WTI) crude declined by 35 cents, or 0.6 per cent, to USD 60.28 per barrel.

Kazakhstan is expected to resume production at its largest oil field, the country’s energy ministry said on Monday, although industry sources noted that output levels remain relatively low.

Meanwhile, the Caspian Pipeline Consortium (CPC), which operates Kazakhstan’s primary oil export pipeline, announced that it had returned to full loading capacity at its terminal on Russia’s Black Sea coast following the completion of maintenance work at one of its three mooring points.

Market indicators also pointed to near-term supply tightness, with the premium of March Brent futures over April rising to more than 80 cents per barrel, compared with approximately 30 cents at the beginning of the month.

Downward pressure on prices was partly offset by significant production losses in the United States, where a powerful winter storm swept across large parts of the country, straining energy infrastructure and power grids. Analysts and traders estimate that U.S. oil producers lost up to 2 million barrels per day over the weekend, equivalent to around 15 per cent of national output.

Geopolitical developments further influenced market sentiment, as a U.S. aircraft carrier and supporting warships arrived in the Middle East, according to U.S. officials cited by Reuters. The deployment expands President Donald Trump’s capacity to defend U.S. forces in the region or potentially undertake military action against Iran.

In a separate development, Germany, Britain, Denmark and several other European countries signed a clean energy agreement at the North Sea Summit in Hamburg on Monday, underscoring Europe’s continued push towards energy transition amid ongoing volatility in global oil markets.



PUKMEDIA