- Oil steadied near $61 a barrel after a US winter storm disrupted Texas Gulf Coast refineries
- Freezing weather curtailed some US oil production and delayed refinery operations
- OPEC+ plans to keep oil output steady amid market concerns and upcoming policy review
Oil steadied as traders weighed the impact on demand from a sweeping US winter storm, which has led to disruptions at major refiners such as Exxon Mobil Corp. across the Texas coast.
West Texas Intermediate traded near $61 a barrel after closing 0.7% lower on Monday. Brent settled below $66. The freezing conditions affected a number of refineries on the US Gulf Coast, and curtailed some oil production. While the massive storm has passed, there are concerns that the deep snow and ice unleashed by the sweeping system could prolong its impact.
Oil futures have rallied at the start of the year, despite expectations for a glut as OPEC+ and other producers pump more. US intervention in Venezuela could lead to additional barrels entering the market, with Chevron Corp. amassing a large fleet of vessels to ship the nation's crude to American refiners.
OPEC+ delegates are scheduled to meet this weekend to review a decision on production policy for next month, and are expected to stick with plans to keep oil output steady. There's no sign so far of any need to respond to events in members Venezuela and Iran, according to one delegate.
President Donald Trump put the spotlight back on Iran after renewing threats against Tehran's leadership, following a crackdown on people protesting the government of Ayatollah Ali Khamenei. The US leader dispatched naval assets to the Middle East, injecting some risk premium into oil prices.
Prices
- WTI for March delivery was 0.3% higher at $60.81 a barrel at 8:25 a.m. in Singapore.
- Brent for March settlement closed 0.4% lower at $65.59 a barrel on Monday.
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