Oil is falling even as the US winter storm curbs crude production

Oil prices fell on Tuesday even as a massive winter storm hit crude production and hit refineries on the US Gulf Coast. Brent crude futures fell 28 cents, or 0.4%, to $65.31 a barrel at 0145 GMT. U.S. West Texas Intermediate crude traded at $60.39 a barrel, down 24 cents, or 0.4%.

In the U.S., oil producers lost up to 2 million barrels a day, or roughly 15% of national output, this weekend, analysts and traders estimated, as a winter storm swept through the country, straining energy infrastructure and power grids.

Several refineries along the US Gulf Coast also reported problems related to the frigid weather, raising concerns about fuel supply disruptions, according to Daniel Hynes, an analyst at ANZ.

On the geopolitical front, a U.S. aircraft carrier and supporting warships have arrived in the Middle East, two U.S. officials told Reuters on Monday, expanding President Donald Trump’s options to defend U.S. forces or possibly take military action against Iran.

“Supply risks have not completely disappeared… Tensions in the Middle East remain after President Trump sent naval assets to the region,” Hynes said.

Meanwhile, eight members of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, are expected to maintain the group’s pause on oil production increases during a meeting on February 1, three OPEC+ delegates told Reuters, with prices rising due to a drop in oil production in Kazakhstan. The eight member assemblies of OPEC+ are Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria and Oman.