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Kazakh halt ups ANS
Fire at Tengiz, Korolev oilfields in Kazakhstan interrupts production
Steve Sutherlin Petroleum News
Alaska North Slope crude caught a lift Jan. 20, up 42 cents to close at $64.60 per barrel, in the first trading session after the Tengiz and Korolev oilfields in Kazakhstan were shut in Jan 18 due to power distribution issues. U.S. markets were closed Jan. 19 for a federal holiday.
Operations at the fields, operated by Tengizchevroil (TCO), were halted after a fire broke out on a pair of turbine transformers at the GTES-4 power station, according to KazMunayGas, The Astana Times reported Jan. 21.
"Most of Kazakhstan's oil exports are shipped via the Caspian Pipeline Consortium, which delivers crude to the Black Sea terminal at Yuzhnaya Ozereyevka near Novorossiisk," the paper said, adding that sustained reduction in Tengiz output directly affects CPC throughput, as the field is central to the pipeline's supply mix.
Chevron, the largest shareholder in Tengizchevroil, told Reuters that production at the fields had been shut in as a precautionary measure, declining to comment on operational timelines or financial implications.
Industry sources estimated a shutdown could last some seven to 10 days, while other estimates indicated that the shut-in might extend into early February.
The effects of the shut-in were more pronounced for the Atlantic-centric crude futures. West Texas Intermediate jumped 90 cents Jan. 20 to close at $60.34 and Brent lifted 79 cents to close at $64.92 -- vaulting to a 32-cent premium over ANS.
Oil futures continued higher on Jan. 21 taking WTI to a close of $60.62 and lifting Brent to $65.24.
Oil futures had slumped in early trading Jan. 21 as markets fretted over an appearance slated for later in the day in Davos by President Donald Trump. Traders worried that if Trump followed through with tariffs threatened for Feb. 1 on countries that resisted a U.S. takeover of Greenland, it would negatively impact trade and hammer oil demand.
Following a meeting with NATO Secretary General Mark Rutte, however, Trump said that they had "formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region."
Trump said that due to that progress he did not plan to impose the tariffs.
Growing inventories effect muted The specter of growing U.S. crude stocks was not enough to quell the rally in crude futures Jan 21.
In a Jan. 20 preliminary pool by Reuters, six analysts on average estimated that U.S. commercial crude inventories rose by some 1.7 million barrels in the week ending Jan. 16, while distillate inventories likely fell.
Inventory data in the weekly petroleum report by the U.S. Energy Information Administration was delayed until 12 p.m. EST Jan. 22, one day later than usual due to the federal holiday Jan. 19.
Strong economic data from China was supportive of crude prices.
Chana's economy grew 5.0% in 2025, following its government's plan to seize a record share of global demand for goods to offset weak domestic consumption, Reuters reported Jan. 19.
ANS rose 27 cents Jan. 16 to close at $64.18, as WTI rose 25 cents to close at $59.44 and Brent rose 37 cents to close at $63.76.
Crude prices cratered Jan. 15 after President Trump said government violence against protesters in Iran was abating, removing considerable geopolitical risk of potential military action in Iran and elsewhere in the region -- which was feared to threaten significant disruption of oil production and transportation. ANS plunged $2.07 to close at $63.90, WTI plummeted $2.83 to close at $59.19 and Brent plummeted $2.76 to close at $63.76.
On Jan. 14, ANS rose 41 cents to close at $65.97, WTI jumped 87 cents to close at $62.02 and Brent leapt $1.05 to close at $66.52.
ANS lost 96 cents over the week from its close of $65.56 Jan. 13 to its close of $64.60 Jan. 20. On Jan 20 ANS closed at a $4.06 premium over WTI.
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