Oil prices fell in Asian trade on Tuesday with focus squarely on tensions between the U.S. and Iran, while traders also watched for supply disruptions stemming from extreme weather in the United States.

Crude prices clocked some gains in recent sessions as heightened tensions over Iran spurred bets on some supply disruptions. A bitter snowstorm across the U.S. was also seen taking up to 2 million barrels of oil production offline over the weekend.

But expectations of tighter supplies were offset by Kazakhstan signaling that it will resume production from the Tengiz oil field, its largest oil producing facility.

Brent oil futures for March fell 0.6% to $65.22 a barrel, while West Texas Intermediate crude futures fell 0.5% to $60.33 a barrel by 21:20 ET (02:20 GMT).

Iran tensions, US weather disruptions in focus
A U.S. aircraft carrier and several destroyers were seen arriving in the Middle East over the weekend. Trump had said last week that the U.S. had an “armada” headed towards Iran, but hoped he would not have to use it.

The deployment came as Trump threatened Iran to stop killing protesters during recent nationwide protests. But the demonstrations were seen cooling in recent weeks, while Trump also softened his tone on the Middle Eastern country.

In the U.S., a severe snowstorm sparked disruptions across the country, stopping oil production and straining the country’s electric grid.

Focus was squarely on whether extended disruptions in the U.S. will tighten overall crude supplies.

Kazakhstan to resume output at Tengiz
Kazakhstan officials said on Monday that the country is set to resume production at the Tengiz field after a fire and power outage stopped production at the facility.

But Reuters reported that production volumes at the field were expected to initially be low, especially given that the country was yet to lift a force majeure on CPC Blend exports.

Kazakhstan is the world’s 12th largest producer of oil, and is also a member of the Organization of Petroleum Exporting Countries and allies.

The group is set to leave production levels unchanged during an upcoming February 1 meeting. The OPEC had hiked production steadily through 2025, and announced a pause late in the year to stem prolonged weakness in crude prices.
Source: Investing.com