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Oil Eases as Traders Look Past Kazakh Outage

Growing confidence the Tengiz shutdown will be brief is refocusing attention on tariff risks as well as expected U.S. stock builds.

Overview

  • WTI for March dipped to $59.57 in early Wednesday trading after a prior session gain, while Brent last settled at $64.92 on Tuesday.
  • Tengizchevroil suspended output at Kazakhstan’s Tengiz and Korolev fields after power distribution problems, and Reuters sources said the halt could last 7–10 more days.
  • Physical tightness lingered in the Caspian export system, with reported operational issues at the Caspian Pipeline Consortium port adding to near-term supply constraints.
  • President Donald Trump detailed tariffs starting at 10% on eight European countries from February 1, rising to 25% by June 1 without a Greenland agreement, and later said there was “no going back” on his goal.
  • China’s reported 5.0% 2025 GDP growth and a weaker dollar supported earlier crude gains, even as the IEA’s surplus warnings and an expected U.S. crude inventory build temper bullish momentum.