Gulf coast of the United States oil refineries disrupted by massive winter storm, check weather forecast, impact on stocks, prices

Gulf coast of the United States oil refineries have been affected by a massive winter storm which has also hit crude production. In the U.S., oil producers lost up ‌to 2 million barrels per day or roughly 15 per cent of national production over the weekend, analysts and traders estimated, as a winter storm swept across the country, straining energy infrastructure and ​power grids.

Several refineries along the U.S. ​Gulf Coast also reported issues related to the freezing ‌weather, ‍which Daniel Hynes, an analyst at ANZ, said ‍raised concerns about fuel supply disruptions.

Oil Prices

Oil prices were little changed on Tuesday ‍as a massive winter storm hit ​crude production and affected refineries on the U.S. Gulf Coast, with price rises ⁠offset by a resumption in supply from Kazakhstan. Brent crude futures were down 6 cents, or 0.1%, at $65.53 a barrel at 1146 GMT. U.S. West Texas Intermediate crude declined 1 cent, or 0%, to $60.62 a barrel.

At the same time, several refineries along the U.S. Gulf Coast reported issues related to the freezing weather, which Daniel Hynes, an analyst at ANZ, said raised concerns about fuel supply ​disruption.

Oil Supply Impact on Stocks

"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. This could boost prices in the coming days, ‌he said.

The oil price rise was tempered by Kazakhstan, which is poised to resume production from its biggest oilfield, according to its energy ministry. Industry sources said volume was still low.

The CPC, which operates Kazakhstan's main exporting pipeline, also said it returned to full loading capacity at its terminal on the Russian Black Sea coast after maintenance was completed at one of its three mooring points.

Some traders are also likely to be taking profit ‍on heating oil, which has risen sharply in recent days due to the cold weather in the U.S., PVM's Varga said.

U.S. Weather Forecast

In addition to freezing conditions -- which could be as much as 30 degrees colder than usual in some areas -- forecasters said gusty winds will create dangerously low wind chills. The coldest wind chills -- a measure of how cold the air feels on exposed skin -- could be as low as minus 50 degrees across the Northern Plains, and are expected to be below zero in much of the Central and Eastern United States through Tuesday.

The extreme temperatures and prolonged cold will bring risks of hypothermia and frostbite, forecasters warned. Some "modest warming" is expected later in the week, they said, though hazardous wind chills are likely to persist through Friday.