Oil prices erased earlier gains today when Brent reached a new high in 13 months, surpassing $ 65 a barrel, after the markets witnessed a wide buying movement due to a snowstorm in Texas, USA.
Brent crude fell three cents, recording $ 64.31 a barrel, by 10:46 GMT, after it had reached $ 65.52 earlier in the session, its highest level since January 20, 2020.
While US West Texas Intermediate crude futures fell four cents to $ 61.10 a barrel, after it had previously reached $ 62.26 a barrel, its highest level since January 8, 2020.
The cold wave continued in Texas for the sixth day, today, Thursday, as the largest US state of energy production suffers from a major disruption in refining activities and shutdowns of oil and gas production operations, whose effects reached neighboring Mexico.
This caused about four million barrels per day of refining capacity to stop, and about one million barrels per day from oil production.
“The temporary pause will accelerate the pace of decline in US oil inventories towards the five-year average, at a faster than expected pace,” said Bjarnie Sheldrup, chief commodity analyst at SEP.
Prices also received support from a larger than expected drawdown in US crude stocks.
Data from the American Petroleum Institute showed that US crude inventories fell by 5.8 million barrels in the week ending February 12, to about 468 million barrels, compared to analysts’ expectations of a decrease of 2.4 million barrels.