Oil Pulled in Two Directions
Oil prices moved steadily as traders weighed two factors simultaneously: extreme weather in the US disrupting refinery activity, versus a market outlook that remained concerned about a global supply glut.
At the start of the Asian session, WTI (Mar) was around $60.85/barrel (+0.4%), while Brent (Mar) held steady at around $65.59/barrel (-0.4% from Monday's close).
The winter storm sweeping across the US briefly disrupted energy operations. Reuters reported that units at the Exxon Baytown complex were shutting down due to freezing temperatures, and disruptions were also occurring at several other facilities in the Gulf Coast region. The impact on demand/production was still considered "temporary," but the market remained vigilant as snow and ice could prolong logistical disruptions.
From a geopolitical perspective, a "risk premium" remained in place after Trump deployed military assets to the Middle East and US-Iran tensions were again a concern. This prevented prices from falling sharply, although medium-term fundamentals still point to the potential for oversupply.
Essentially, oil is being pulled in two directions: extreme weather and geopolitics are holding back declines, while expectations of abundant supply are limiting rallies. Therefore, prices are likely to stabilize while awaiting further data and headlines. (az)
Source: Newsmaker.id
