SINGAPORE – Oil prices rose more than $ 1 Tuesday as US production was slow to return after a deep freeze in Texas shut down crude production last week.
It could take at least two weeks for shale oil producers in the southern United States to restart the more than 2 million barrels per day (bpd) of crude production that shut down due to cold weather as frozen pipelines and Power supply interruptions slow down your recovery, sources. saying.
Brent crude was up $ 1.06, or 1.6%, at $ 65.30 a barrel at 0204 GMT, after peaking at $ 66.38. US crude rose 81 cents, or 1.4%, to $ 62.51 a barrel, after hitting a session high of $ 62.73. Both benchmarks are up more than 1% after rising nearly 4% in the previous session.
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“Positive momentum continues in the oil complex, with investors blatantly predisposed to a bullish view,” Stephen Innes, Axi’s chief global markets strategist, said in a note.
Goldman Sachs Commodities Research raised its Brent crude oil price forecasts by $ 10 for the second and third quarters of 2021, citing lower expected inventories, higher marginal costs to restart upstream activity and speculative inflows.
The Wall Street bank expects Brent prices to hit $ 70 a barrel in the second quarter from the $ 60 it previously predicted and $ 75 in the third quarter from the previous $ 65.
Morgan Stanley expects Brent crude prices to rise to $ 70 a barrel in the third quarter on “signs of a much improved market,” including prospects for a pickup in demand.
It’s hard not to be optimistic about oil prices now that the break in the freeze virtually guarantees that the summer rebound in oil demand will erase any excess supply that remains, “said Edward Moya, senior market analyst at OANDA in New York .
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“Global demand for oil is looking much better now that Pfizer vaccine shows positive results after one dose, the UK sees the end of the pandemic ‘in sight’ and as hospitalizations and deaths continue to decline after reaching its peak maximum in early January “.
US stocks of crude oil and refined products likely declined last week, a preliminary Reuters poll showed on Monday, due to the disruption in Texas.