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The drop in oil production in the United States amounted to almost 40%
Severe frosts in the United States caused power outages, which resulted in the suspension of several refineries and a reduction in oil and gas production.
World benchmark oil prices continue to rise and, for the first time since January 21, 2020, exceeded $ 65 per barrel. This is evidenced in the trading data for the morning of Thursday, February 18.
Thus, April futures for Brent on the ICE futures exchange in London rose 0.87 dollars (1.35%), to 65.21 dollars a barrel. As a result of trading on Wednesday, these contracts increased $ 0.99 (1.6%), to $ 64.34 per barrel.
The cost of WTI futures for March in the electronic session on the New York Mercantile Exchange (NYMEX) increased by $ 0.67 (1.1%) – to $ 61.81 per barrel. The day before, these contracts rose $ 1.09 (1.8%) to $ 61.14 per barrel.
The spread between the current contracts for Brent and WTI is $ 3.40 in favor of Brent.
“Black gold” rises in price in the context of a sharp drop in production in the United States due to severe frosts. They affected not only Texas, but several other states as well, causing power outages, which resulted in the shutdown of several large refineries, as well as a reduction in oil and gas production.
According to Bloomberg, the decline in US production amounted to more than 4 million barrels per day, or almost 40%. At the same time, the demand for gasoline has declined, as severe frosts have forced many Americans to avoid traveling by car.
It was also reported that the United States will stop the development of oil and gas fields. Instead, by order of President Joe Biden, renewable energy production will be increased.
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