Oil Prices Reacted Atypically To A Drop In Production Due To A Snow Storm In The US
- 27.01.2026, 13:09
Investors were watching for a possible resumption of supplies from Kazakhstan.
Oil prices fell on Tuesday, January 27, as investors kept an eye on a possible resumption of supplies from Kazakhstan. At the same time, price declines were limited due to a powerful winter storm that hit oil production and refinery operations on the U.S. Gulf Coast.
Agency Reuters writes that Brent crude futures fell 41 cents, or 0.6%, to $65.18 a barrel. The price of U.S. West Texas Intermediate crude fell 30 cents, or 0.5 percent, to $60.33 a barrel.
It is noted that Kazakhstan is ready to resume production at its largest oil field, although industry sources say volumes are still low. The Caspian Pipeline Consortium (CPC), which operates the country's main export pipeline, also reported a return to full loading capacity at its terminal on Russia's Black Sea coast after completing maintenance on one of its three berths.
The decline in oil prices was tempered by the loss of U.S. production as the country was hit by a severe winter storm that overwhelmed energy infrastructure and power grids. Analysts and traders estimated that U.S. producers lost up to 2 million bpd, or about 15% of national production, over the weekend.
At the same time, several refineries along the U.S. Gulf Coast reported problems related to freezing weather, adding to concerns about fuel supply disruptions.
On the geopolitical front, two U.S. officials told Reuters that a U.S. aircraft carrier and auxiliary warships have arrived in the Middle East, expanding President Donald Trump's ability to protect U.S. forces or potentially resort to military action against Iran.
"Supply risks have not disappeared completely.... Tensions in the Middle East remain after President Trump deployed naval assets to the region," said ANZ analyst Daniel Haynes.
On the supply side, the eight members of the Organization of the Petroleum Exporting Countries and their allies, which together form OPEC+, are set to continue a pause in oil production increases in March.