Article

2021-02-16 Economy

Oil hits pandemic high as winter storm pushes demand and poses production risk

[CNBC] Freezing weather in regions across the U.S. sparked another rally in energy prices and put West Texas Intermediate crude on pace to settle above $60 a barrel for the first time since the early days of the coronavirus pandemic.

WTI crude futures rose 62 cents, or 1%, to $60.09 a barrel Monday. The jump brings WTI crude futures up about 24% so far in 2021. It touched $60.77 a barrel earlier in the session, its highest level since January 2020.

Brent crude, the international benchmark, climbed 1.4% to $63.33 after hitting its own 13-month high.

The latest pop in the energy market came as cold weather racked portions of the U.S. and fostered demand for power and fuel while simultaneously threatening to hamstring production in Texas.

"Winter storm and arctic blast of cold weather that is making its way south to Houston may have some severe impacts on the oil industry," oil analyst Andy Lipow wrote over the weekend.

Posted by Besoeker 2021-02-16 06:32|| || Front Page|| [6 views ] Top

#1 Texas and Oklahoma are freezing up. Refineries there have been shut down due to equipment failing in the cold.

Gee, I wonder how important Texas refineries that the Enviros hate are to the US economy?

Wind power fails. Natural Gas, on the other hand, seems to just keep going. And the baseload that is saving lives now is good old Coal and a few Nukes.

Posted by Deadeye Jaiting7534 2021-02-16 16:09|| 2021-02-16 16:09|| Front Page Top

#2 Natural Gas, on the other hand, seems to just keep going. Natgas supplies in Ohio in Jan. 1977 were a bit doubtful due to pipeline problems during that record cold month. Hasn't made the news since then though.

Posted by Thineger Sproing6704 2021-02-16 18:36|| 2021-02-16 18:36|| Front Page Top

#3 You have to have power at the natural gas wellhead and the various processing facilities - you need to keep the wellhead heated somehow even in just mildly cold conditions if (as is usually the case) the gas has a bit of entrained water, as the pressure drop through the wellhead will chill it to freezing. In very cold conditions any residual water could freeze up anywhere in the processing stream.

Posted by Glenmore 2021-02-16 19:54|| 2021-02-16 19:54|| Front Page Top

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