Brent falls as Kazakhstan’s Tengiz oilfield resumes operation
The front-month ICE Brent contract has declined by $0.85/bbl on the day, to trade at $65.27/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Brent crude has felt some upward pressure as harsh winter weather in the US has disrupted production across major crude-producing regions.
US crude oil output has fallen by as much as 250,000 b/d due to severe weather conditions, Reuters reported.
“A winter storm in the US is likely to spur increased heating demand amid snow, ice and freezing temperatures,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
Harsh weather conditions are also “raising concerns about disruptions to energy supply,” with US refineries struggling to operate in full force, according to Hynes.
Downward pressure:
Brent’s price has moved lower following news that the Chevron-led consortium operating Kazakhstan’s Tengiz oilfield has resumed production after last week’s fire.
The fire that damaged a power generation and distribution facility on 18 January forced a temporary shutdown of the oilfield.
The oilfield is operated by a consortium led by US-headquartered Chevron, which holds a 50% stake, alongside ExxonMobil with 25%, Kazakhstan’s state oil company KazMunayGaz with 20%, and Russia’s Lukoil with 5%.
The oilfield “accounts for most of Kazakhstan’s exports,” Hynes added.
By Aparupa Mazumder
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