Oil prices will rise further on the resumption of slow U.S. production

PHOTO FILE: An employee holds a sample of crude oil at Yarakta oil field, owned by Irkutsk Oil Co., in Irkutsk region, Russia on March 11, 2019. REUTERS / Vasily Fedosenko / File Photo

Energy & Environment

Jessica Jaganathan

SINGAPORE (Reuters) – Oil prices rose again on Tuesday after a jump in the previous session, holding near a 13-month high as U.S. output slowly returned after a deep freeze. the Texas closed in crude production last week.

Coal oil producers in the southern United States could take at least two weeks to resume more than 2 million barrels per day (bpd) of crude products that will close due to cold weather, as frozen pipes and power supply interruptions slow their recovery, sources said.

Brent crude futures rose 28 cents, or 0.4%, at $ 65.52 a barrel before 0102 GMT, while U.S. crude oil rose 14 cents, or 0.2%, to $ 61.84 a barrel. Both criteria rose by almost 4% in the previous session.

“The positive trend continues in the oil complex, with investors unwittingly coming to a bullish view,” Stephen Innes, Axi’s chief global markets strategist, said in a note.

“Several important revisions to oil prices were announced overnight and may have contributed to the rally of more than 3%,” he said.

Goldman Sachs Commodities Research raised Brent crude oil price forecasts by $ 10 for the second and third quarters of 2021, citing lower expected investments, higher marginal costs to restore upstream activity and estimated inflows. -start.

Wall Street Bank expects Brent prices to reach $ 70 per barrel in the second quarter from its previously forecast $ 60 and $ 75 in the third quarter from $ 65 earlier.

Morgan Stanley expects Brent crude prices to climb to $ 70 per barrel in the third quarter on “signs of a much better market” including opportunities to improve demand.

Also supporting prices, OPEC and U.S. oil companies are seeing a limited reversal in coal oil supply this year as major U.S. producers freeze production despite rising prices , a decision that would help OPEC and its allies.

U.S. crude oil stocks and revised prices appear to have declined last week, a preliminary Reuters poll showed Monday, due to the unrest in Texas.

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