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Oil declines as Texas power companies readjust production

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London / 19.02.2021 07:45:20

Oil prices fell as energy companies of Texas in U.S were preparing to resume production in their fields of raw Y gas that suffered closures due to an extreme cold wave.

Oil futures Brent they lost 87 cents, or $ 1.27, at $ 63.12. Meanwhile, US WTI crude futures were down $ 1.06, or 1.75 percent, at $ 59.46 a barrel.

The unusually icy weather in Texas and in the US Plains states, it suspended the extraction of up to 4 million barrels of oil per day (bpd) and 21 billion cubic feet of natural gas, according to market analysts.

Refineries Texas they stopped about a fifth of the country’s crude processing capacity due to power outages and low temperatures.

Today, companies in the region are expected to get ready to return to activity after the reactivation of electricity and water supplies, sources said.

« The market is going through a correction and the signs that the electricity and energy situation in general are normalizing in Texas provide the necessary catalysts, » he said Vandana Hari, Vanda Insights analyst.

Crude prices fell despite a surprise drop in US oil inventories in the week to February 12, before the bad weather front hit Texas. Stocks fell 7.3 million barrels to 461.8 million barrels, their lowest level since March, the Energy Information Administration (EIA) said.

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