Oil prices edged lower on Tuesday as investors awaited the resumption of supply from Kazakhstan
Oil prices edged lower on Tuesday as investors awaited the resumption of supply from Kazakhstan, but declines were hampered by a major winter storm impacting US crude oil production and refineries on the Gulf Coast.
Brent crude futures fell 28 cents, or 0.4%, to $65.31 a barrel as of 09:00 GMT. WTI crude also dropped 19 cents, or 0.3%, to $60.44 a barrel.
Kazakhstan's Energy Ministry said on Monday that its largest oil field was ready to resume production, but volume was still low.
CPC, which operates Kazakhstan's main export pipeline, also announced it had returned to full loading capacity at its terminal on the Russian Black Sea coast after completing maintenance work at one of its three points.
The resumption of oil production in Kazakhstan is putting downward pressure on the market.
Some investors may also be inclined to profit from heating fuel, which has risen sharply in recent days due to cold weather in the US by sales.
Production losses due to a severe winter storm sweeping across the US and straining energy infrastructure and power grids have somewhat mitigated the decline in oil prices.
Analysts and investors estimate that US oil producers lost up to 2 million barrels per day over the weekend, or about 15% of national production.
At the same time, many refineries along the US Gulf Coast reported problems related to the freezing weather, raising concerns about disruptions in fuel supply.
Analysts predict significant declines in oil inventories in the coming weeks, which could push prices higher.
On the geopolitical front, the US armada has arrived in the Middle East, expanding the capabilities of US forces to conduct defensive or potentially military operations against Iran.
Supply risks have not completely disappeared. Tensions and supply threats in the Middle East persist following Trump's deployment of naval forces to the region.
On the supply side, the Organization of Petroleum Exporting Countries (OPEC) and their allies, collectively known as OPEC+, are preparing to uphold their decision at their February 1 meeting to pause oil production increases for March.
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