Oil prices fell on Tuesday even as a massive winter storm hit crude production and affected refineries on the U.S. Gulf Coast.
Brent crude futures fell 28 cents, or 0.4%, to $65.31 a barrel at 0145 GMT. U.S. West Texas Intermediate crude was at $60.39 a barrel, down 24 cents, or 0.4%.
In the U.S., oil producers lost up to 2 million barrels per day or roughly 15% of national production over the weekend, analysts and traders estimated, as a winter storm swept across the country, straining energy infrastructure and power grids.
Several refineries along the U.S. Gulf Coast also reported issues related to the freezing weather, which Daniel Hynes, an analyst at ANZ, said raised concerns about fuel supply disruptions.
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On the geopolitical front, a U.S. aircraft carrier and supporting warships have arrived in the Middle East, two U.S. officials told Reuters on Monday, expanding President Donald Trump’s capabilities to defend U.S. forces, or potentially take military action against Iran.
“Supply risks haven’t totally evaporated … Tension in the Middle East persists after President Trump dispatched naval assets to the region,” Hynes said.
Meanwhile, eight members of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, are expected to keep the group’s pause on oil output increases for March at a meeting on February 1, three OPEC+ delegates told Reuters, with prices rising due to a drop in Kazakhstan’s oil production.
The eight OPEC+ members meeting are Saudi Arabia, Russia, UAE, Kazakhstan, Kuwait, Iraq, Algeria and Oman.
