Oil prices showed a significant rise on Tuesday over the slow return of production in Texas and on optimism over the vaccine campaigns' work to eradicate Covid-19.
International benchmark Brent crude was trading at $65.12 per barrel at 0710 GMT for a 1.18% rise after closing Monday at $64.36 a barrel.
American benchmark West Texas Intermediate (WTI) was at $62.39 per barrel at the same time for a 1.11% increase after ending the previous session at $61.70 a barrel.
Oil prices started the week on a bullish sentiment with the slow pace of normalizing output in Texas after the US state’s oil production fields were caught unprepared in an unprecedented cold front that lasted almost a week, bringing 65% of production to a halt.
Jose Chalhoub, political risk and oil analyst, told Anadolu Agency that Texas lost almost 4 million barrels a day of production, noting “refineries will likely take at least 2 weeks to fully recover operations.”
Oil prices are recording a slow but gradual upward trajectory with cautious optimism for global economic recovery, he said, adding that the massive scale of vaccinations, the yet-to-be-approved US stimulus package by the Biden administration and growing demand in India where there is a call to end OPEC+ oil cuts, are also supporting prices.
Investors are also awaiting the outcome of the upcoming ministerial meeting of OPEC+ on March 4 when Chalhoub expects the usual Saudi Arabia-Russia debate over the feasibility and benefits of keeping the current cuts or easing them further.
By Sibel Morrow