Oil prices declined as market participants shifted their focus toward expectations of robust supply, while assessing the disruptions caused by a severe winter storm across the United States. West Texas Intermediate futures fell toward USD 60 per barrel following a 0.7% drop in the previous session, with Brent crude trading near USD 65. Another factor contributing to the downward pressure, is Kazakhstan’s largest oil producer is preparing to restart production at the major Tengiz field, and also Chevron Corp. is working to increase the flow of Venezuelan crude into an already well-supplied global market.
In the United States, freezing conditions have temporarily disrupted operations at several refineries along the Gulf Coast, although the effects are anticipated to be short-lived. Natural gas futures, which had rallied sharply due to the cold weather, retreated on Tuesday as the market adjusted. According to Haris Khurshid, Chief Investment Officer at Karobaar Capital LP, winter storms typically influence oil markets through temporary logistical and refining interruptions rather than affecting underlying demand. He noted that, unless inventories are particularly tight, such impacts tend to fade once normal operations resume.
Oil Market Awaits OPEC+ Verdict
Despite this recent pullback, oil futures have advanced since the beginning of 2026, even amid projections that supply will exceed demand this year. Attention is now turning to the upcoming OPEC+ meeting this weekend, where members are scheduled to review output policy for the following month. The group is widely expected to maintain current production levels, with one delegate indicating there is no immediate need to adjust output in response to developments in member countries such as Venezuela and Iran.
Geopolitical factors, however, continue to introduce elements of uncertainty. President Donald Trump recently redirected attention toward Iran by renewing threats against its leadership following a government crackdown on protests. The subsequent deployment of U.S. naval assets to the Middle East has reintroduced a risk premium into oil prices, underscoring the market’s continued sensitivity to political tensions in key producing regions.
