Global crude oil prices edged down after a two-day rally on Texas supply disruptions after the US dollar climbed.
Brent crude fell by $0.40, or 0.6%, to $62.95 a barrel while the US West Texas Intermediate (WTI) crude futures dropped by $0.33 or 0.6% to reach $59.72 a barrel, reported Reuters.
Go deeper with GlobalData
Axi chief market strategist Stephen Innes was cited by the news agency as saying: “Oil is trading lower via a stronger US dollar, which is gaining a head of steam with US (treasury) yields ripping higher.”
Brent price also dropped after Western Europe’s largest oil and gas producer Norway deterred closure of major offshore fields and a strike by oil workers after agreeing on new wage terms by workers with operator Equinor.
Rystad Energy analyst Paola Rodriguez-Masiu said: “Yet the strike was avoided …As a result, with oil supply unaffected, Brent gains had to be reversed to a certain extent.”
Meanwhile, oil supply in the US remains strained as cold weather led to a halt of 500,000bpd to 1.2Mbpd of crude production in the Permian Basin in Texas.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAccording to calculations by Reuters, the deep freeze knocked out nearly one-fifth of the refining capacity in the country.
Innes added: “This is one of the worst Mother Nature catastrophes I can ever remember while catching the oil complex wrong-footed at the supply levels.”
According to Reuters analysts’ poll estimates, the crude stocks dropped 2.2 million barrels, on average, in the week ending 12 February.
