Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Oil jumps almost 4% as output slow to recover from Texas storms

02/22/2021 | 03:18pm EST
FILE PHOTO: Crude oil storage tanks are seen in an aerial photograph at the Cushing oil hub

NEW YORK (Reuters) - Oil prices rose nearly 4% on Monday, boosted by the expected slow return of U.S. crude output after last week's deep freeze in Texas shut in production.

U.S. producers shut anywhere from 2 million to 4 million barrels per day of oil output due to cold weather in Texas and other oil producing states, and the unusually cold conditions may have damaged installations that could keep output offline longer than expected.

Brent crude settled at $65.24 a barrel, rising $2.33, or 3.7%, while U.S. oil settled at $61.49 a barrel, jumping $2.25, or 3.8%. The U.S. benchmark crude contract for March delivery expires on Monday, and the more widely-traded April contract was up $2.44, or 4.1%, at 61.70 a barrel.

Shale oil producers in the region could take at least two weeks to fully restart normal output, sources said, as damage assessments and power disruptions slow their recovery.

"The significant loss of both crude and gasoline production suggests more upside and likelihood of new highs possibly within a one-week time frame," said Jim Ritterbusch of consultancy Ritterbusch and Associates. But he cautioned that with limited refining capacity, price could under pressure if refiners take weeks to return to normal.

"The market is behaving as if the refiners are going to come online quicker than the headlines would lead you to believe," said Yawger. Gasoline crackspreads, an indicator of refiners' margins have dropped by 5%.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres, signalling even tighter supplies ahead. [RIG/U]

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

"Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production," said SEB chief commodity analyst Bjarne Schieldrop.

(Additional reporting by Noah Browning and Aaron Sheldrick in London and Jessica Resnick-Ault in New York; Editing by Jason Neely and Emelia Sithole-Matarise, David Gregorio and Jane Merriman)

By Laila Kearney


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL -0.57% 66.81 Delayed Quote.21.01%
WTI -0.40% 63.958 Delayed Quote.23.30%
Latest news "Economy & Forex"
05:54pNasdaq loses all of its 2021 gain
RE
05:46pU.S. 10-yr Treasury yield to hit 1.9% by year end -Goldman Sachs
RE
05:45pWELLS FARGO WILL GRANT PAID TIME OFF FOR VACCINE APPOINTMENTS : memo
RE
05:38pConsumer Cos Fall After Yields, Oil Prices Spike -- Consumer Roundup
DJ
05:34pBiden meets with U.S. lawmakers on infrastructure push
RE
05:32pBUZZ, the ETF of Social-Media Darlings, Drops in Trading Debut -- Update
DJ
05:25pFed's Powell pledges patience, says easy policy appropriate
RE
05:25pPowell pledges Fed easy policy patience, markets look impatient
RE
05:17pHealth Care Down As Risk Aversion Weighs On Biotech -- Health Care Roundup
DJ
05:14pTexas electric industry financial crisis to grow as more costs surface
RE
Latest news "Economy & Forex"