FX.co ★ WTI Rebounds as US Winter Storm Cuts Oil Output

On Tuesday, West Texas Intermediate (WTI) crude oil futures saw an approximate increase of 1.5%, reaching $61.60 per barrel. This rise followed a 0.7% decline on Monday, largely influenced by a severe winter storm in the United States that disrupted both crude oil production and refinery operations. U.S. oil producers experienced a reduction of up to 2 million barrels per day, representing about 15% of the nation's output, due to the freezing temperatures that affected energy infrastructure and power grids. Several refineries along the U.S. Gulf Coast reported issues triggered by the weather, escalating worries about short-term fuel supply and the possibility of drawing down stockpiles if the cold weather continues. Geopolitical tensions remained a significant factor, as the United States deployed an aircraft carrier along with supporting warships to the Middle East, keeping global tensions high. In contrast, concerns over supply shortages were somewhat alleviated by the anticipation of increased production from Kazakhstan, especially as the Tengiz field prepares to resume production and the CPC pipeline has returned to its full loading capacity. Additionally, OPEC+ is expected to uphold its current production levels at its forthcoming meeting.