Crude Oil Prices Ease on Jan 27, Despite US Winter Storm Disruptions

Oil prices moved lower in early Tuesday trade despite a severe winter storm impacting crude production and refinery activity across the United States.

While weather-related disruptions tightened short-term supply, broader market sentiment remained cautious amid geopolitical developments in the Middle East and expectations that OPEC+ will maintain current output policy at its upcoming meeting.

Oil Prices Decline in Early Trade

Crude prices recorded modest losses in early trading hours. Brent crude futures slipped by 28 cents, or 0.4%, to $65.31 per barrel, while US West Texas Intermediate crude fell 24 cents, or 0.4%, to $60.39 per barrel.

The decline came despite significant weather-related disruptions in key US energy regions.

Winter Storm Hits US Crude Production

A powerful winter storm sweeping across the United States affected oil production and energy infrastructure. Analysts and traders estimate that producers shut in up to 2 million barrels per day over the weekend, representing nearly 15% of total US crude output.

The extreme weather strained power grids and disrupted operations in multiple production areas.

Refinery Operations Face Weather-Related Issues

Several refineries along the US Gulf Coast reported operational challenges linked to freezing conditions. As per news reports, these disruptions have raised concerns about potential fuel supply constraints in the near term, adding another layer of uncertainty to short-term market dynamics.

Geopolitical Developments in the Middle East

On the geopolitical front, US officials confirmed the arrival of an aircraft carrier and accompanying warships in the Middle East.

 The deployment expands the United States’ capacity to protect its forces in the region and potentially respond to escalating tensions involving Iran. Such developments continue to influence market risk assessments.

OPEC+ Expected to Maintain Output Policy

Meanwhile, eight key members of the OPEC+ alliance are expected to keep their pause on oil output increases for March. Delegates indicated that the decision is likely to be confirmed at a meeting scheduled for February 1. 

The participating nations include Saudi Arabia, Russia, the UAE, Kazakhstan, Kuwait, Iraq, Algeria and Oman. Recent support to prices has also come from a decline in Kazakhstan’s oil production.

Read More: Crude Oil Prices Recover on Jan 23, 2026, on Geopolitical Concerns and US Inventory Data.

Conclusion

Oil markets remain balanced between supply disruptions caused by extreme weather in the United States and broader geopolitical and policy considerations. With OPEC+ expected to hold output steady and US operations gradually recovering, market participants are likely to continue monitoring supply stability and international developments in the days ahead.

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