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Oil Surges Toward $68 Brent as U.S. Freeze‑Offs Tighten Supply and Iran Risk Lingers

Traders recalibrate for short‑term tightness despite expectations of an OPEC+ pause that could cap the rally.

Overview

  • Brent settled at $67.57 and WTI at $62.39 on Tuesday, up about 3% after a weather‑driven supply shock, according to market closes reported by Reuters and The Globe and Mail.
  • U.S. producers lost up to roughly 2 million barrels per day over the weekend, and Gulf Coast crude and LNG exports briefly fell to zero on Sunday before rebounding as ports reopened.
  • A U.S. carrier strike group arrived in the Middle East and the Treasury sanctioned vessels and firms linked to Iranian oil, sustaining a geopolitical risk premium after President Trump’s ‘armada’ warning.
  • Kazakhstan’s Tengiz field is restarting slowly with less than half of normal output expected by early February, even as the CPC Black Sea terminal returned to full loading capacity.
  • U.S. natural gas spiked to multi‑year highs above $6–$7 per MMBtu before easing, with freeze‑offs cutting output and feedgas to LNG plants, tightening flows to Europe and lifting regional prices.