After a short pause, oil prices are on the rise again

Brent 1st-nearby prices are back near their recent highs, above $91.5/b, while WTI is at a 7-year high near $91/b, as the cold snap hits Texas. The Brent-WTI spread is narrowing sharply

EnergyScan oil news

The severe cold increases heating demand but also affects oil production and transportation in the Permian Basin, which accounts for about 40% of total US production. At this stage, the disruptions seem to be relatively limited, but the low level of stocks means that the slightest disruption in the market will put additional pressure on prices.

Apart from that, the context remains unchanged with geopolitical tensions adding a risk premium to prices in a fundamentally tight market, which has not been altered by OPEC’s decision to continue increasing production. With regard to Russia, it is worth noting that US diesel imports from Russia are at their highest level in 3 years to supply the East Coast, which has also been hit by a severe cold snap. We await the Baker Hughes rig count today for an indication of US shale oil activity.

Share this news :

You might also read :

ES-oil
December 1, 2021

Volatility deterrent

Crude prices remained volatile, with an intraday correction of 3%, to end up gaining back most of it, at 72 $/b for the February ICE…
ES-gas
March 18, 2022

Slight price rebound

European gas prices rebounded slightly yesterday, supported by the additional drop in pipeline supply. Indeed, Russian flows weakened again yesterday, to 211 mm cm/day on…
ES-gas
January 20, 2021

Prices rebounded

European gas prices rebounded yesterday, supported by new weather forecasts pointing to colder temperatures and ongoing weak LNG and pipeline supply. Russian flows were almost…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet? 

[booked-calendar]