Photo caption: Oil
Oil steadied as traders focused on the outlook for plentiful supply, while monitoring the fallout from a sweeping US winter storm.
West Texas Intermediate (CL=F) traded below $61 a barrel after closing 0.7% lower on Monday, while Brent (BZ=F) was near $66. Kazakhstan’s largest producer is preparing to resume output at the giant Tengiz field, while Chevron Corp. works to bring more Venezuelan crude to a market that’s mostly well-supplied.
In the US, freezing conditions have disrupted a number of refineries on the Gulf Coast and a smattering of domestic output, though the impact is unlikely to be prolonged. US natural gas futures retreated on Tuesday following a powerful rally due to the cold snap, as did diesel futures in New York.
“Oil is backtracking a bit after once again finding resistance above $66.50 for Brent,” said Ole Hansen, head of commodities strategy at Saxo Bank. “Kazakh supply, no news from Iran and fading diesel prices as the US winter storm is past its peak all adding some downside focus.”
Oil rallied at the start of 2026, despite widespread expectations of a glut, as setbacks to Kazakh exports tightened the European market and US threats against Iran injected a risk premium into prices. But the rally has cooled as a key Black Sea terminal came back online, and there haven’t been major developments since the US dispatched naval assets to the Middle East last week.
OPEC+, meanwhile, is scheduled to meet this weekend to review a decision on output policy for next month, and are expected to stick with plans to keep oil production steady. There’s no sign so far of any need to respond to events in members Venezuela and Iran, according to one delegate.
=== Bloomberg ===
