Oil prices were mixed on Wednesday, with Brent down slightly but the US contract edging higher as supply concerns grew after a winter storm disrupted crude output and halted Gulf Coast exports over the weekend.
Brent crude futures fell 6 cents, or 0.1 per cent, to $67.51 a barrel by 0122 GMT, but US West Texas Intermediate crude climbed 4 cents, or 0.1 per cent, to $62.43 a barrel.
Both benchmarks surged about 3 per cent on Tuesday.
US producers lost up to 2 million barrels per day or roughly 15 per cent of national output over the weekend, analysts and traders estimated, as the storm strained energy infrastructure and power grids.
Crude and liquefied natural gas exports from US Gulf Coast ports tumbled to zero on Sunday, ship tracking service Vortexa said.
“The impact of the US cold snap and concerns over supply disruptions in Kazakhstan are supporting prices, but once supply fears ease, selling pressure is likely to return,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
He added the balance between a projected supply surplus this year and geopolitical risks, including Middle East tensions, could keep WTI trading around $60 a barrel for now.
Kazakhstan’s biggest oilfield, Tengiz, is likely to restore less than half of its normal production by February 7 as it slowly recovers from a fire and power outage, two sources familiar with the matter told Reuters.
Pipeline operator CPC said it has returned to full loading capacity at its Black Sea terminal after completing maintenance at one of its three mooring points.
Supply fears remain amid mideast tensions
A US aircraft carrier and supporting warships have arrived in the Middle East, two US officials told Reuters on Monday, expanding President Donald Trump’s capabilities to defend US forces, or potentially take military action against Iran.
On the supply side, OPEC+, or the Organisation of the Petroleum Exporting Countries plus Russia and other allies, is set to keep its pause on oil output increases for March at a meeting on February 1, three OPEC+ delegates told Reuters.
US crude oil and gasoline stockpiles were expected to have risen in the week ended January 23, while distillate inventories likely fell, an extended Reuters poll showed on Tuesday.
But US crude and gasoline stocks fell while distillate inventories rose last week, market sources said, citing American Petroleum Institute figures on Tuesday.
