Post by : Meena Ariff

Oil prices slipped on Tuesday as Kazakhstan resumed crude production from its largest oilfield, signaling a gradual return of supply to global markets. However, volumes remain limited as the country continues to ramp up output after previous disruptions. Brent crude futures declined by 28 cents, or 0.4%, to $65.31 per barrel at 0900 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude fell 19 cents, or 0.3%, to $60.44 per barrel.

Kazakhstan’s decision to restart operations at its key oilfield comes after a period of halted or reduced output, which had tightened supply in the energy markets. Despite this positive development, the overall increase in supply remains modest, as full production capacity is yet to be restored. Industry insiders note that while the resumption is a step forward, actual volumes entering the market are still low, keeping the supply situation somewhat constrained.

At the same time, a powerful winter storm sweeping across the U.S. Gulf Coast has severely disrupted crude production and refinery activities in one of the country’s most crucial energy hubs. The storm has forced temporary shutdowns of several oil platforms and refineries, reducing output and limiting fuel processing capacity. This has caused supply bottlenecks, helping to offset the downward pressure on prices from Kazakhstan’s supply resumption.

The storm’s impact on the Gulf Coast has heightened concerns about supply shortages in the near term, supporting crude prices despite the gradual return of production from Kazakhstan. Energy market participants are closely monitoring weather conditions and production reports to gauge the extent and duration of the storm’s disruptions.

Overall, oil markets are currently balancing between these two opposing forces — increased supply from Kazakhstan and constrained production due to severe weather in the U.S. Gulf region. This delicate equilibrium is keeping price movements relatively moderate as traders await further developments in both regions.

#Global News #World News #Trade