Oil Steadies as Supply Outlook Tempers Fallout From US Freeze

2 months ago 16

Nicholas Lua and Alex Longley

Tue, January 27, 2026 astatine 4:28 AM CST 2 min read

(Bloomberg) — Oil steadied arsenic traders focused connected the outlook for plentiful supply, portion monitoring the fallout from a sweeping US wintertime storm.

West Texas Intermediate (CL=F) traded beneath $61 a tube aft closing 0.7% little connected Monday, portion Brent (BZ=F) was adjacent $66. Kazakhstan’s largest shaper is preparing to resume output astatine the elephantine Tengiz field, portion Chevron Corp. works to bring much Venezuelan crude to a marketplace that’s mostly well-supplied.

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In the US, freezing conditions person disrupted a fig of refineries connected the Gulf Coast and a smattering of home output, though the interaction is improbable to beryllium prolonged. US earthy state futures retreated connected Tuesday pursuing a almighty rally owed to the acold snap, arsenic did diesel futures successful New York.

“Oil is backtracking a spot aft erstwhile again uncovering absorption supra $66.50 for Brent,” said Ole Hansen, caput of commodities strategy astatine Saxo Bank. “Kazakh supply, nary quality from Iran and fading diesel prices arsenic the US wintertime tempest is past its highest each adding immoderate downside focus.”

NY Mercantile - Delayed Quote USD

60.94 +0.31 (+0.51%)

As of 5:50:21 AM EST. Market Open.

Oil rallied astatine the commencement of 2026, contempt wide expectations of a glut, arsenic setbacks to Kazakh exports tightened the European marketplace and US threats against Iran injected a hazard premium into prices. But the rally has cooled arsenic a cardinal Black Sea terminal came backmost online, and determination haven’t been large developments since the US dispatched naval assets to the Middle East past week.

OPEC+, meanwhile, is scheduled to conscionable this play to reappraisal a determination connected output argumentation for adjacent month, and are expected to instrumentality with plans to support lipid accumulation steady. There’s nary motion truthful acold of immoderate request to respond to events successful members Venezuela and Iran, according to 1 delegate.