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SINGAPORE – Oil prices jumped more than a dollar on Tuesday as US production was slow to return after a deep freeze in Texas that halted crude production last week.
Shale oil producers in the southern United States could take at least two weeks to restart the more than 2 million barrels per day (b / d) of crude production that has been shut down due to cold weather as the Frozen pipes and interruptions in the power supply are slowing their recovery, sources mentioned.
Brent rose $ 1.06, or 1.6%, to $ 65.30 a barrel at 0204 GMT, after previously peaking at $ 66.38. U.S. crude rose 81 cents, or 1.4%, to $ 62.51 a barrel, after hitting a session high of $ 62.73. Both benchmarks rose more than 1% after climbing nearly 4% in the previous session.
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“The positive momentum continues in the oil complex, with investors undoubtedly predisposed to a bullish outlook,” Stephen Innes, chief global markets strategist at Axi said in a note.
Goldman Sachs Commodities Research has raised its Brent crude oil price forecast by $ 10 for the second and third quarters of 2021, citing lower expected inventories, higher marginal costs to restart upstream activity and speculative entries.
Oil prices jumped more than $ 1 on Tuesday, as US production was slow to return after a deep freeze in Texas that shut down crude production last week. Photo credit: iStock
The Bank of Wall Street expects Brent prices to hit $ 70 a barrel in the second quarter from $ 60 it previously predicted and $ 75 in the third quarter from $ 65 earlier.
Morgan Stanley expects Brent prices to climb to $ 70 a barrel in the third quarter due to “signs of significant market improvement,” including the prospect of demand recovery.
It’s hard not to be bullish with oil prices now that the disruption of the deep freeze virtually guarantees that the summer pickup in crude demand will wipe out the supply glut, ”said Edward Moya, senior market analyst at OANDA in New York.
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“Global oil demand looks much better now that Pfizer vaccine shows positive results after one dose, UK sees pandemic end ‘in sight’, and as hospitalizations and deaths continue to decline after peaked in early January. ”
Inventories of U.S. crude oil and refined products likely fell last week, according to a preliminary Reuters poll on Monday, due to the disruption in Texas.
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