Oil prices expand gains as Texas cold snap cuts U.S. output By Reuters

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© Reuters. FILE PHOTO: The sun shines behind a crude oil pump jack in the Permian Basin of Loving County

By Yuka Obayashi TOKYO (Reuters) – Oil prices rose as much as $ 1 on Thursday, extending this week’s gains and hitting 13-month highs as a cold snap that swept through Texas and surrounding regions closed at least a fifth. part of US refining production million barrels of crude production. rose 93 cents, or 1.5%, to $ 65.27 a barrel at 0219 GMT, hitting its highest level since January 20, 2020. US West Texas Intermediate (WTI) crude futures gained 76 cents, or 1.2%, to $ 61.90 a barrel, registering their highest since January 8, 2020. Both benchmarks were up about $ 1 on Wednesday and have gained more than 6% since their close last Thursday. The unusual freeze hitting much of the United States could hamper crude production for days or even weeks, analysts said. Texas’ power sector was without power for a fifth day on Wednesday, after an Arctic blast spread deep into southern states that are not typically affected by extreme cold. About 1 million barrels per day (bpd) of crude production has been shut down, according to analysts at Wood Mackenzie, and it could be weeks before production is fully restored. “A wave of new oil futures purchases was triggered as an unexpected shock to oil production and refineries in Texas from a cold storm increased crude and fuel supply fears,” said Chiyoki Chen, chief analyst at Sunward Trading. . “A larger-than-anticipated drop in {{8849 | crude US crude inventories also added to supply concerns,” Chen said. US crude oil inventories fell 5.8 million barrels in the week to February 12 to about 468 million barrels, compared with analysts’ expectations of a 2.4 million barrel extraction, the US officials showed. data from the American Petroleum Institute. [API/S] Oil inventory data from the U.S. Energy Information Administration (EIA) will be released later on Thursday, delayed by a day after Monday’s holiday. [EIA/S] Oil prices have rebounded in recent weeks in the hope of US stimulus and as global supplies shrink, due in large part to production cuts from the Organization of the Petroleum Exporting Countries (OPEC) and producers. allies of the OPEC + group. But OPEC + sources told Reuters that the group’s producers are likely to ease supply restrictions after April given the recovery in prices.

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