Oil Prices Stall as US Winter Storm Disrupts Supply

World oil prices remained unchanged on Tuesday, January 27, as the effects of a strong winter storm in the United States offset any positive developments in the supply side, especially in Central Asia.

Markets balanced weather-driven production losses and refinery disruptions with expectations of restored output and steady policy from major oil producers.

Brent crude futures edged lower by 6 cents, or 0.1 percent, to trade at Ksh 8442.89 a barrel by mid-morning GMT, while U.S. West Texas Intermediate slipped marginally by 1 cent to Ksh 7810.28 a barrel.

The lack of significant price movements is a reflection of the competing forces within the global energy market.

The United States experienced significant production difficulties due to the freezing temperatures that covered a large portion of the country.

It is estimated that domestic oil producers lost as much as 2 million barrels per day over the weekend, representing roughly 15 percent of total national output.

Cold Weather Strains US Energy Infrastructure

There have been several reports of refineries along the US Gulf Coast that have been experiencing difficulties in their operations owing to the freezing conditions.

Daniel Hynes, an analyst at ANZ, noted that, “The weather-related disruptions had intensified worries over refinery output and downstream availability.”

“The cold weather in the U.S. will likely cause quite significant drawdowns in oil stocks over the next few weeks, particularly if this weather persists,” said Tamas Varga, an oil analyst at brokerage PVM.

He added that sustained cold conditions could provide upward pressure on prices in the days ahead.

However, gains linked to U.S. supply losses were capped by developments overseas, as Kazakhstan moved toward restoring production at its largest oilfield.

While the country’s energy ministry signaled a resumption of output, industry sources indicated that volumes remained subdued in the initial phase.

Also Read: Kenyan Oil Firm Metro Petroleum Faces Possible Shutdown

Kazakhstan Output and Pipeline Operations Ease Pressure

Further easing supply concerns, the Caspian Pipeline Consortium reported a return to full loading capacity at its terminal on the Russian Black Sea coast after maintenance work was completed at one of its three mooring points.

The development also supported export flows from Kazakhstan, which helped temper the bullish effects of disruptions emanating from the U.S.

Market participants also seemed to be taking profits on recent advances made by heating oil, which posted strong gains in recent sessions as demand rises with the onset of winter.

Varga commented that this profit-taking may have contributed to limiting gains made by prices overall.

Also Read: EXPLAINER: Why Global Oil Prices Dropped in Early 2026

Supply Risks Persist Amid Middle East Tensions

Aside from weather-related issues and production-related issues, geopolitical issues also affected market sentiment.

“Supply risks haven’t totally evaporated. Tension in the Middle East persists after President Trump dispatched naval assets to the region,” Hynes commented, citing issues related to potential disruptions stemming from Middle Eastern tensions.

Meanwhile, the OPEC+ coalition is also set to extend its pause on scheduled oil output hikes when it meets on February 1, with March output scheduled to remain unchanged.

This has further solidified market expectations of a balanced market, leading to prices being range-bound.

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Fuel pump at a petrol station in Kenya. PHOTO/NTV.