Oil prices are experiencing a volatile mix, with Brent prices slightly down but U.S. contracts edging higher, as supply concerns linger in the wake of a winter storm. The storm has disrupted crude output and halted Gulf Coast exports, causing a significant impact on the energy sector. U.S. producers have lost up to 2 million barrels per day, or approximately 15% of national output, due to the storm's strain on energy infrastructure and power grids. Crude and liquefied natural gas exports from U.S. Gulf Coast ports plummeted to zero on Sunday, according to ship tracking service Vortexa. However, the situation is further complicated by supply fears in Kazakhstan, where the Tengiz oilfield is expected to restore less than half of its normal production by February 7. Pipeline operator CPC has resumed full loading capacity at its Black Sea terminal after maintenance. Amid Middle East tensions, a U.S. aircraft carrier and supporting warships have arrived, raising concerns about potential military action against Iran. On the supply side, OPEC+ is set to maintain its pause on oil output increases for March at a meeting on February 1. U.S. crude oil and gasoline stockpiles are expected to have risen in the week ending January 23, while distillate inventories likely fell. However, last week saw a decrease in U.S. crude and gasoline stocks and an increase in distillate inventories, according to market sources citing American Petroleum Institute figures. This complex interplay of supply and demand, coupled with geopolitical risks, is keeping oil prices in a state of flux.
