Brent Oil Stays Above $ 63
Brent Oil Stays Above $ 63, Power Crisis Hits US Supply
As the crude oil production in the USA was interrupted and deepened the energy crisis, the largest refineries in the country were closed. Thus, Brent Oil reached its highest peak in 13 months in Asia.
In London on Monday, the price of petroleum oil per barrel rose 1.4 % to over $ 63. Freezing weather caused Texas‘s power system to collapse and caused power outages throughout the United States. The production more than 1 million barrels of oil a day was stopped.
Energy Aspects Ltd. has estimated that 3 million barrels per day processing capacity could be offline.
With the cold weather conditions and refinery shutdowns, the price of everything from gasoline to propane is expected to increase. It is also predicted that current conditions may cause an increase in oil consumption in the northern hemisphere.
The North Sea oil market, which captured the price of more than two-thirds of the world’s crude oil, saw the biggest rise in Europe on Monday. As a result of the agreement between the Norwegian Oil and Gas Union through the Safe union, a possible refinery worker strike in Norway was prevented.
Saudi Arabia, where production was restricted and crude oil stocks decreased due to the coronavirus epidemic, caused the global oil benchmark to rise by more than 20 %, despite all the difficulties.
Russian Deputy Prime Minister Alexander Novak made a statement on the issue and stated that oil prices reflect the current situation and are “balanced”.
Will Sungchil Yun, a prominent commodity analyst in Seoul, told VI Investment Corp. that the US expects a tightening of global supply and an increase in demand as a result of the above-mentioned situations. West Texas Intermediate stated that it became easier for the oil price to reach $ 65 per barrel.
During the Chinese New Year period (February 12), travel decreased as Covid-19 cases increased again. However, despite this, the consumption of China, the world’s largest oil importer, remained below the normal level. However, the 14-day Relative Strength Index of both Brent and WTI remained well above 70 although they thought prices would decline.
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