Oil rises, driven by a larger-than-expected drop in US supplies and a cold snap in Texas By Investing.com

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© Reuters.

By Gina Lee Investing.com – Oil rose in Asia Thursday morning, continuing a nearly week-long rally and breaking 13-month highs. The cold snap in Texas and surrounding regions continues to hamper production, with at least a fifth of US refining output and one million barrels of crude production paralyzed. rose 1.20% to $ 65.11 at 10:54 pm ET (3:54 am GMT), the highest since January 20, 2020. increased 0.92% to $ 61.70, its highest level since January 8, 2020 Brent and WTI futures held firmly above the $ 60 mark, gaining more than 6% since Thursday. Production could be hampered for days or even weeks, some investors have warned. Texas’ energy sector saw its fifth day without power on Wednesday, after a rare Arctic explosion swept through southern states. Analysts at Wood Mackenzie predicted that about a million barrels per day of crude production has been shut down and warned that restoring production levels could take weeks. “A flurry of new oil futures purchases was triggered as an unexpected shock to oil production and refineries in Texas from a cold storm heightened crude and fuel supply fears,” Sunward Trading chief analyst told Reuters , Chiyoki Chen. “A larger-than-anticipated drop in US crude oil inventories also added to supply concerns,” Chen added. US crude oil supply data from the American Petroleum Institute showed a 5.8 million barrel draw for the week ending February 12, compared with the 2.175 million barrel draw in the prepared forecasts. by Investing.com and the 3.5 million barrel draw recorded. during the previous week. Data from the US Energy Information Administration will be received later in the day. Also recently gave a boost to oil prices by hopes for a US stimulus package, which in turn raised hopes for higher demand for fuel and a global supply tightening led by the Organization of Countries. Oil Exporters and their allies (OPEC +). However, the recovery in prices could cause the cartel to ease supply restrictions after April.

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