The supply chain has lost more than four million barrels per day, with refineries also slashing fuel production.
February 19, 2021
HOUSTON—What started as a power grid situation for some southern U.S. states has triggered a crisis across the globe in the oil market, Bloomberg reports. Nearly 40% of the U.S. crude production—more than four million barrels per day—has been shuttered, according to officials and traders. One of the largest oil refining centers in the world has had to significantly reduce output, while access to the waterways that deliver U.S. oil to the world has been interrupted.
“The market is underestimating the amount of oil production lost in Texas due to the bad weather,” Ben Luckock, co-head of oil trading at Trafigura Group, told Bloomberg. Brent crude oil topped $65 a barrel yesterday as supplies tightened.
Previously, when weather disrupted U.S. domestic oil production, the rest of the world felt.. READ MORE