Oil prices decline as Kazakhstan nears production recovery

Oil drilling rigs

Oil prices fell at the close of trading today, Jan. 26, as production neared resumption at Kazakhstan's largest oil field, mitigating the impact of reduced US supplies due to a winter storm.

Brent crude futures for March delivery fell 0.44%, or 29 cents, to $65.59 a barrel. WTI crude oil futures for March delivery declined 0.72%, or 44 cents, to $60.63 a barrel.

Kazakhstan's energy minister announced today that his country would resume production at its largest oil field, after it was halted due to a problem with electricity supplies. However, Reuters reported citing informed sources that the force majeure status on CPC crude exports remains in place.

On the other hand, the Caspian Pipeline Association (CPCA) said its Black Sea port had regained full operational capacity after the completion of maintenance on one of its three docking points.

These developments came after a severe winter storm that hit large parts of the US last weekend disrupted production in key oil and natural gas extraction areas.