LONDON, Jan 28, 2026, 11:54 GMT — Regular session
Brent crude futures slipped on Wednesday but hovered near their highest point since late September, driven largely by ongoing supply disruptions. By 1017 GMT, Brent fell 39 cents, or 0.6%, to $67.18 a barrel. U.S. West Texas Intermediate lost 22 cents, trading at $62.17.
The pullback follows a roughly 3% jump in both contracts the day before, fueled by storm-related outages across the U.S. The market is still weighing how long those disruptions might last. Producers in the U.S. lost as much as 2 million barrels per day over the weekend. Meanwhile, Kazakhstan’s Tengiz field is recovering slowly, keeping prompt supplies tight, traders said. City Index analyst Fawad Razaqzada described the near-term outlook as “short-term risks tilted to the upside.” Reuters
Exports have been chaotic as well. Ship-tracking firm Vortexa reported U.S. Gulf Coast crude exports plunged to zero on Sunday, down from about 4.2 million bpd on Saturday, before bouncing back to 4.4 million bpd Monday as the ports came back online. Samantha Santa Maria-Hartke from Vortexa called the shutdowns a “precautionary measure.” Reuters
Currency shifts have boosted support. The dollar index stayed close to four-year lows near 96, a point that often pushes dollar-priced commodities higher by making them more affordable for buyers outside the U.S. Traders are also eyeing the Federal Reserve’s policy announcement due Wednesday. Capital.com analyst Kyle Rodda warned of “a crisis of confidence” brewing in the U.S. dollar. Reuters
Officials in Kazakhstan are scrambling to speed up the Tengiz restart after a power outage and fire disrupted operations. Energy Minister Yerlan Akkenzhenov confirmed the field is coming back online in phases, aiming for full production within a week. Tengiz’s capacity stands at about 900,000 bpd, and the outage has already cost at least 7.2 million barrels. When pressed on whether that timeline was realistic, Akkenzhenov simply said, “We will try.” Reuters
Beyond the storm and the situation in Kazakhstan, Washington is adjusting the supply landscape. U.S. officials are set to roll out a general license that would ease some sanctions on Venezuela’s energy sector, moving away from the slower route of approving exemptions on a case-by-case basis, according to sources familiar with the matter. In recent weeks, Chevron, Repsol, Eni, and Reliance have all sought individual licenses, Reuters reported.
The return of Venezuelan heavy crude is already shifting trade flows in the refined products market and could limit crude price gains if it accelerates. Gregory Battenfield, a broker at International Trans Oil Energy, said an increase in heavy Venezuelan barrels to the U.S. Gulf Coast would weigh on imported fuel-oil demand. Energy Aspects put the capacity of Gulf Coast refiners to handle these barrels at an additional 600,000 bpd.
Geopolitical tensions continue to support prices. U.S. officials reported that the aircraft carrier USS Abraham Lincoln, along with guided-missile destroyers, has entered the Middle East, intensifying attention on Iran amid already jittery markets worrying about supply disruptions.
The storm premium could vanish fast if U.S. production and exports get back on track and Tengiz boosts output sooner than expected. A surprise rise in U.S. inventories would have the same effect. A Reuters poll referenced by CNA suggested last week’s U.S. crude and gasoline stockpiles climbed, while distillates like diesel and heating oil were expected to drop. Government data is due at 1530 GMT. Traders also have their eyes on the OPEC+ meeting on Feb. 1 for clues about March supply.
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