Oil prices fell as traders focused on expectations of ample supply, while the market monitored the fallout from a widespread winter storm that hit the United States.
West Texas Intermediate crude futures for March delivery fell 0.6% to $60.25 a barrel at 1:20 p.m. Singapore time, while Brent crude futures for March settlement dropped 0.7% to trade at $65.15 a barrel.
Kazakhstan's largest oil producer is preparing to resume production at the giant Tengiz field, while Chevron is working to increase shipments of Venezuelan crude to a market wary of a supply glut.
Limited disruption in America and a return to stability in the markets
In the United States, weather conditions disrupted several refineries on the Gulf Coast, but the impact is unlikely to be long-lasting. Meanwhile, natural gas futures fell on Tuesday after a strong rally fueled by the cold snap.
Harris Khurshid, chief investment officer at Karobaar Capital, said: “Winter storms typically affect the oil market through short-term disruptions to logistics and refining operations, rather than underlying demand.”
He added: Unless stockpiles have already been depleted, the impact usually fades once operations return to normal.
Iran tensions add a risk premium
Although oil futures contracts have risen at the start of 2026, forecasts indicate that supply will exceed demand during this year.
The OPEC+ alliance is scheduled to meet later this week to review its production policy for next month, with expectations that it will adhere to its plan to freeze production increases. One of the alliance's delegates said there are currently no indications that a response to developments in member countries such as Venezuela and Iran is needed.
Meanwhile, US President Donald Trump has once again turned his attention to Iran, renewing his threats against Tehran's leadership following a crackdown on protesters opposed to the government of Supreme Leader Ali Khamenei. The US president also deployed naval assets to the Middle East, adding a risk premium to oil prices.
