Global oil prices climbed more than 1% on Tuesday as a severe winter storm disrupted crude production and refinery operations across the U.S. Gulf Coast. Brent crude rose to about $66.49 a barrel, while U.S. West Texas Intermediate gained to around $61.50.
The storm forced U.S. producers to shut in up to 2 million barrels per day, roughly 15% of national output, straining energy infrastructure and tightening short-term supply.
Analysts said the cold weather could persist, leading to significant drawdowns in U.S. oil inventories in the coming weeks.
Further support came from Kazakhstan, where output at the giant Tengiz oilfield is restarting more slowly than expected following a fire and power outage.
Production is projected to recover to less than half of normal levels by early February.
Market sentiment was also buoyed by a weaker U.S. dollar and continued geopolitical risks in the Middle East.
The arrival of U.S. naval assets in the region has renewed concerns over potential supply disruptions linked to tensions involving Iran.