Oil Extends Gains On Supply Disruptions

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Oil prices rose further on Wednesday because of the unexpected cold weather in Texas and fears of supply disruptions.

Benchmark Brent crude rose 67 cents, or about 1 percent, to $64.02 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 50 cents, or 0.8 percent, at $60.55.

A deep freeze across the United States is taking a toll on the energy industry in the largest U.S. crude-producing state, halting fuel flow to power plants and sending power demand to record highs.

ANZ and Citigroup analysts estimated at least 2 million barrels per day (bpd) of U.S. shale oil production has been curtailed.

Chevron Corp’s 112,229 barrel-per-day (bpd) Houston-area refinery in Pasadena, Texas, was shut on Tuesday, the company said.

Investors eye U.S. oil inventory data from the American Petroleum Institute industry group and the Energy Information Administration for further direction.

OPEC+ meets on March 4 to set its policy and it is expected that producers will likely ease curbs on supply after April given a recovery in prices.


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