Crude Witnessed Another Jump Weighed by the Slow Output from the U.S.
- 23-Feb-2021 11:00 AM
- Journalist: Robert Hume
Crude oil climbed by more than 1 USD on Tuesday backed by the slow return of U.S. output after the freezing fallout and the consistent market optimism arising from the rollout of Covid-19 vaccines. Consequently, Brent crude oil prices climbed by USD 1.10 and settled at USD 66.34 per barrel.
Major U.S firms have decided to halt their shale production despite being in high demand due to the cold weather conditions being faced by Texas. The abrupt halt in production in US. has provided OPEC allies an opportunity to get a hold over the U.S market.
The refineries in U.S are expected to take at least another two weeks to return to their previous production levels. Although, some U.S firms have increased their drilling, but the production is expected to remain tight as companies are focusing more on declining their debt and increasing the returns of shareholders. With the U.S firms being more focused towards high returns of shareholders the OPEC will try to curb its pandemic loss by getting a hold over the supply in U.S market.