Oil steadies as traders gauge demand impact from US winter storm

Oil prices steadied as traders gauged the impact on demand from a US winter storm, which has caused disruptions at major refiners across the Texas coast such as Exxon Mobil Corp.

West Texas Intermediate traded close to $61 a barrel post closing 0.7% lower on Monday. Meanwhile, Brent settled below $66.

he freezing conditions affected a number of refineries on the US Gulf Coast, and curtailed some oil production. While the massive storm has passed, there are concerns that the deep snow and ice unleashed by the sweeping system could prolong its impact.

Oil futures have rallied at the start of the year, despite expectations for a glut as OPEC+ and other producers pump more. US intervention in Venezuela could lead to additional barrels entering the market, with Chevron Corp. amassing a large fleet of vessels to ship the nation’s crude to American refiners.

OPEC+ delegates are scheduled to meet this weekend to review a decision on production policy for next month, and are expected to stick with plans to keep oil output steady. There’s no sign so far of any need to respond to events in members Venezuela and Iran, according to one delegate.

President Donald Trump put the spotlight back on Iran after renewing threats against Tehran’s leadership, following a crackdown on people protesting the government of Ayatollah Ali Khamenei. The US leader dispatched naval assets to the Middle East, injecting some risk premium into oil prices.

With inputs from Bloomberg

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