Oil Extends Rally on Texas Supply Disruptions
03.15.2021 - NEWS

March 15, 2021 [Reuters] – Oil prices have run up strongly in recent months and output disruptions caused by the storm in Texas, the country’s largest oil producing state, continued to keep prices supported, analysts said.

 
Oil prices advanced further on Wednesday, underpinned by major supply disruption in the south of the United States this week, caused by a historic winter storm in Texas.

U.S. West Texas Intermediate (WTI) crude futures rose 41 cents, or 0.68%, to $60.46 a barrel at 0752 GMT.

Brent crude futures gained 44 cents, or 0.69%, to $63.79 a barrel.

Oil prices have run up strongly in recent months and output disruptions caused by the storm in Texas, the country’s largest oil producing state, continued to keep prices supported, analysts said.

ANZ and Citigroup analysts estimated at least 2 million barrels per day (bpd) of U.S. shale oil production has been curtailed. Citi estimated a cumulative production loss of around 16 million barrels through early March.

But the extreme cold has also hit crude demand due to disruptions to refinery operations. Chevron Corp’s 112,229 barrel-per-day (bpd) Houston-area refinery in Pasadena, Texas, was shut on Tuesday, the company said.

The stronger price environment has put more attention on OPEC+, who will meet to set policy on March 4, analysts said.

“The impact on crude oil prices will largely depend on how long the power crisis will last, but eventually prices will likely return to the fundamentals with a focus on the global energy demand and OPEC+,” said Margaret Yang, a strategist at Singapore-based DailyFX.

OPEC+ oil producers are likely to ease curbs on supply after April given a recovery in prices, OPEC+ sources told Reuters.

Saudi Arabia’s voluntary cut of 1 million barrels per day (bpd) ends next month. While Riyadh hasn’t shared its plans beyond March with its OPEC+ partners, expectations in the group are growing that Saudi Arabia will bring back the supply from April, perhaps gradually.

U.S. oil inventory data from the American Petroleum Institute industry group and the Energy Information Administration (EIA) will be released on Wednesday and Thursday respectively, delayed by a U.S. holiday on Monday.

Analysts polled by Reuters estimated, on average, that crude stocks fell 2.2 million barrels in the week to Feb. 12.

Click Here to Access Today a 6,350 Tank Terminal Database With a Pro Trial
6,350 terminals as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Recently Updated Tank Storage Facilities in TankTerminals.com – Week 24 (2021)
06.16.2021 - NEWS
  Vopak, Oiltanking, EPPCO, Buckeye, LOOP, Shell, Exxon, Exolum, Ageo, Puma, K. Morgan, Moti... Read More
China's Shenghong Plans Test Runs in Q3 at New Oil Refinery - Source
06.14.2021 - NEWS
June 4, 2021 [Nasdaq] – China’s privately-owned Shenghong Petrochemical plans to star... Read More
Equinor to Sell Petroleum Refining Business in Denmark
06.14.2021 - NEWS
June 4, 2021 [Chemical Engineering] – Equinor Energy AS (Stavanger, Norway) has entered int... Read More
Is This The Most Exciting Oil Play Of The Last 20 Years
06.14.2021 - NEWS
June 4, 2021 [Oil Price] – The African nation of Namibia has never produced a barrel of oil... Read More