Oil prices rise after US winter storms
- 22 Feb 2021
Gulf Today Report
Oil prices advanced on Monday as US crude output slowly returns after the cut by frigid conditions.
Brent crude was up 76 cents, or 1.2%, at $61.67 a barrel by 01:04 GMT while US oil rose 74 cents, or 1.3%, to $59.98 a barrel, having fallen 0.4% last week.
According to Goldman Sachs analysts, "We now forecast that oil prices will rally sooner and higher, driven by lower expected inventories and higher marginal costs - at least in the short run - to restart upstream activity."
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Based on analysts’ estimation, the weather conditions in Texas put a halt of up to 4 million barrels per day of crude production and 21 bullion cubic feet of natural gas output.
Oilfield crews will probably take several days to de-ice valves, restart systems and begin oil and gas output.
In a note, ANZ Research said, "with three-quarters of fracking crews standing down, the likelihood of a fast resumption is low."
