The US benchmark oil price rose above $ 60 per barrel. Barrel early on Monday, the highest price since January last year when an Arctic winter explosion swept through Texas, raising concerns about potential disruptions in shale production in the top oil-producing state and logistics on the U.S. Gulf Coast.
From 9:26 a.m. ET on Monday, West Texas Intermediate Crude price had totaled 1.38 percent to $ 60.26. Burnt raw prices was also up and broke over $ 63 per. barrel to $ 63.11, an increase of 1.12 percent on the day.
Winter storms in Texas have raised concerns about shale supply disruptions, analysts say.
Oil prices on Monday “resumed its tightening of supply-driven rallies, now with the added boost of an Arctic explosion in the United States that stretched all the way down to Texas to potentially disrupt currents from Perm, America’s largest slate patch,” Saxo Bank analysts said early on Monday.
WTI prices have now risen 16 percent in February alone, after both benchmarks ended theirs last week longest series of subsequent daily gains in two years.
The meeting resumed on Friday and continued on Monday amid expectations of a further downsizing of global inventories and hopes the US will still pass the stimulus package.
In recent weeks, oil prices have also been supported by increased vaccination rates as well as by declining COVID-19 cases and admissions to the world’s largest economy, the United States.
Current price levels, if held until early March, may push some OPEC + producers to demand more aggressive easing of cuts when the group meets to discuss oil production from 1 April, ING strategists Warren Patterson and Wenyu Yao said on Monday.
“At the current price level, one would expect a number of producers to push for further easing, and this is the position we would expect to be taken from Russia,” said the strategists, adding that “OPEC + will be eager after avoiding a repeat of the March meeting last year, when the previous agreement collapsed. ”
By Tsvetana Paraskova for Oilprice.com
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