Texas snowstorm has slowed down US output resulting in oil prices hike

Oil prices increased by $1 recently as the output in the US were hit by the Texas snowstorm. Crude production came to a halt for more than a week, and the oil producers are now slowly recovering from the deep freeze. It would take more than two weeks for the shale oil producers to come back on track and produce 2 million bpd. The crude output is temporarily shut down because of the cold weather, and the pipes are also frozen. Furthermore, the power supply is also facing interruptions adding more fuel to the slow recovery process. Prices of Brent crude rose by 1.6 percent and stood at $65.30 per barrel after hitting an all-time high of $66.38.

In the US, crude rose by 1.4 percent and stood at $62.51 per barrel after hitting an all-time high price of $62.73. Prices of both the benchmark have risen by more than 1 percent after they climbed for a solid 4 percent in the previous session. Chief global markets strategist at Axi, Stephen Innes, has stated that the new positive momentum will continue in the oil complex until the investors have a bullish view of the market. Recently, Reuter’s poll showed that the Stockpile of US refined products and crude oil is highly likely to decline soon.