Oil prices may rise strongly in the near future due to a sharp decline in U.S. production
The volume of oil production in the United States decreased significantly due to abnormally low temperatures, Bloomberg reported. According to oil producers and traders, the decline exceeds 2 million bpd. Frosts in Texas, which reached -22 ° C, forced major oil companies to suspend operations. Production fell hardest in the Permian Basin, where nearly 50% of the shale oil in the U.S. Exxon Mobil and Motiva decided to suspend operations, while Total (France) minimized the volume of processed crude and stopped refining in the Texas city of Port Arthur, Texas. According to analysts, this circumstance will continue to push prices up in the short term. WTI is already trading above $60 a barrel and Brent has been above $63 since Monday, which was last seen last January. However, the rally will probably not last long, experts say, as it is stimulated by a temporary factor - abnormal weather conditions.