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Reuters
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Oil prices erased previous gains today as Brent hit a new 13-month high, surpassing $ 65 a barrel, after markets witnessed a large buying movement due to a snowstorm in Texas, United States.
Brent crude fell three cents to $ 64.31 a barrel at 10:46 a.m. GMT after hitting $ 65.52 earlier in the session, its highest level since January 20, 2020.
As U.S. West Texas Intermediate crude futures fell four cents to $ 61.10 per barrel, after previously hitting $ 62.26 per barrel, its highest level since Jan.8, 2020.
The cold snap continued in Texas for day six today, Thursday, as America’s largest power-producing state suffers a major disruption in refining activities and shutdowns of operations in production of oil and gas, the effects of which have reached neighboring Mexico.
This has resulted in the shutdown of about four million barrels per day of refining capacity and about one million barrels per day of oil production.
“The temporary hiatus will accelerate the pace of the decline in US oil inventories towards the five-year average, at a faster pace than expected,” said Bjarnie Sheldrup, chief commodities analyst at SEP.
Prices were also supported by a larger than expected drop in crude inventories in the United States.
Data from the American Petroleum Institute showed that U.S. crude inventories fell 5.8 million barrels in the week ending Feb. 12, to about 468 million barrels, compared to analysts’ expectations of ‘a drop of 2.4 million barrels.
Source: Reuters
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