TOKYO (Reuters) – Oil costs rose on Monday because the gradual return of U.S. crude output that was reduce by frigid situations raised issues about provide simply as demand is getting back from the depths of the coronavirus pandemic.
Brent crude was up 76 cents, or 1.2%, at $61.67 a barrel by 0104 GMT, after gaining almost 1% final week. U.S. oil rose 74 cents, or 1.3%, to $59.98 a barrel, having fallen 0.4% final week.
Abnormally chilly climate in Texas and the Plains states compelled the shut down of as much as 4 million barrels per day (bpd) of crude manufacturing together with 21 billion cubic ft of pure fuel output, analysts estimated.
Oilfield crews will seemingly take a number of days to de-ice valves, restart programs and start oil and fuel output. U.S. Gulf Coast refiners are assessing injury to amenities and will take as much as three weeks to revive most of their operations, analysts mentioned, with low water strain, fuel and energy losses hampering restarts.
“With three quarters of fracking crews standing down, the chance of a quick resumption is low,” ANZ Analysis mentioned in a be aware.
“Long term, the autumn in capital expenditure at U.S. shale oil corporations this 12 months will maintain drilling exercise subdued, resulting in output remaining beneath pre-pandemic ranges,” ANZ mentioned.
For the primary time since November, U.S. drilling corporations reduce the variety of oil rigs working because of the chilly and snow enveloping Texas, New Mexico and different power producing centres. [RIG/U]
(Reporting by Aaron Sheldrick; Modifying by Shri Navaratnam)
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