You are here: Home » Markets » Commodities » Energy
Business Standard

Brent gives up gains after rising above $65 on Texas freeze

Prices also gained support from a larger-than-anticipated draw in the US crude oil inventories

Topics
Brent crude | oil and gas | Texas

Reuters  |  LONDON 

Oil, Market, US, Brent Crude, WTi
Representational image

Oil prices erased early gains after Brent hit a new 13-month high above $65 a barrel on Thursday, as concerns that a rare cold snap in could disrupt U.S. crude output for days or even weeks prompted fresh buying.

was down 3 cents at $64.31 a barrel at 1046 GMT, after rising to $65.52 earlier in the session, its highest since Jan. 20, 2020.

U.S. West Intermediate (WTI) crude futures eased 4 cents to $61.10 a barrel, after earlier rising to $62.26, the highest since Jan. 8, 2020.

Texas' freeze entered a sixth day on Thursday, as the largest energy-producing state in the United States grappled with massive refining outages and shut-ins that rippled beyond its borders into neighbouring Mexico.

About 4 million barrels of daily refining capacity has been shuttered and at least 1 million barrels per day of oil production is also out.

"The temporary outage will help to accelerate U.S. oil inventories down towards the five-year average quicker than expected," SEB chief commodities analyst Bjarne Schieldrop said.

Prices also gained support from a larger-than-anticipated draw in the U.S. crude oil inventories.

U.S. crude oil stocks fell by 5.8 million barrels in the week to Feb. 12 to about 468 million barrels, compared with analysts' expectations for a draw of 2.4 million barrels, American Petroleum Institute data showed.

U.S. Information Administration (EIA) oil inventory data will be released later on Thursday, delayed by a day after a holiday on Monday.

Oil's rally in recent months has also been supported by a tightening of global supplies, due largely to production cuts from the Organization of the Petroleum Exporting Countries (OPEC) and allied producers in the OPEC+ grouping that includes Russia.

OPEC+ sources told Reuters the group's producers are likely to ease curbs on supply after April given the recovery in prices.

 

 

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, February 18 2021. 17:53 IST
RECOMMENDED FOR YOU
.