Oil prices jumped by more than one dollar as U.S. oil production slowly recovered after winter storms

Oil prices jumped by more than $1 on Tuesday, due to the slow recovery of US output after the sharp freeze in Texas crude oil production last week.

According to sources, it may take at least two weeks for shale oil producers in the southern United States to recover their 2 million barrels of crude oil production per day, due to the cold weather, due to cold pipelines and power supply interruptions. Closed due to the weather. Say.

At 0204 GMT, Brent crude oil rose 1

.06 US dollars, or 1.6%, to 65.30 US dollars per barrel, having previously hit a high of 66.38 US dollars. US crude oil rose 81 cents, or 1.4%, to $62.51 a barrel, after hitting an intraday high of $62.73. After rising nearly 4% in the previous trading day, both benchmarks have risen by more than 1%.

Occidental Petroleum suffered the sixth direct loss

Stephen Innes, chief global market strategist at Axi, said in a report: “The positive momentum of the oil complex continues, and investors are unabashedly inclined to a bullish view.”

Goldman Sachs Commodities Research (Goldman Sachs Commodities Research) raised its Brent crude oil price forecasts for the second and third quarters of 2021 by $10, citing reduced inventories, increased marginal costs of restarting upstream activities, and speculative inflows.

Wall Street Bank expects Brent crude oil prices to rise from the previous US$60 per barrel to US$70 per barrel in the second quarter, and from the previous US$65 per barrel to US$75 per barrel in the third quarter.

Morgan Stanley predicts that Brent crude oil prices will rise to $70 a barrel in the third quarter due to “signs of substantial improvement in the market,” including the prospect of a rebound in demand.

Nowadays, it is not difficult to remain optimistic about oil prices, because the destruction of the deep freeze actually guarantees that the recovery in summer crude oil demand will eliminate any remaining oversupply. “

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“The global oil demand now looks much better because a dose of Pfizer vaccine showed positive results. The UK saw the end of the pandemic and the number of hospitalizations and deaths continued to decline after peaking in early January.”

A preliminary investigation by Reuters on Monday showed that US crude and refined oil inventories may be reduced last week due to the chaos in Texas.