US winter storm knocks out oil supply; yet prices still fall

Washinton DC: Oil prices slipped on Tuesday even as a severe winter storm disrupted crude production and refinery operations in the United States, highlighting market focus on demand, geopolitics, and OPEC+ policy.

Brent crude futures fell 28 cents, or 0.4%, to $65.31 a barrel, while U.S. West Texas Intermediate crude dropped 24 cents, or 0.4%, to $60.39 a barrel in early Asian trade. A powerful winter storm swept across large parts of the United States over the weekend, forcing oil producers to shut in up to 2 million barrels per day, or around 15% of national production, according to analysts and traders.

Several refineries along the U.S. Gulf Coast reported operational problems due to freezing temperatures. Analysts said the weather raised concerns about possible fuel supply disruptions, even as crude prices softened. Geopolitical risks continued to support the market. A U.S. aircraft carrier and accompanying warships have arrived in the Middle East, expanding U.S. military capabilities in the region amid tensions involving Iran.

Eight OPEC+ members, including Saudi Arabia, Russia, the UAE, and Iraq, are expected to keep their pause on oil output increases for March at a meeting scheduled for February 1. Prices have also found support from lower oil production in Kazakhstan.

Severe cold grips the US

More than 200 million people across the United States remain under severe cold alerts. The storm has been linked to at least 21 deaths, widespread power outages affecting over 700,000 customers, and major travel disruption, including thousands of flight cancellations. Despite production losses and refinery issues, oil prices fell as markets weighed weather-related disruptions against global demand concerns, ongoing geopolitical risks, and expectations around OPEC+ supply decisions.