The lack of a U.S. shale rebound could make it easier for OPEC and its allies to manage the market, according to OPEC sources.
The government plans to supply the gas to several power plants.
The refinery shutdowns will depress prices for U.S. crude oil and widen the spread between U.S. and Brent crude, Paul Sankey of independent energy researcher Sankey Research said.
Rather than add another “what went wrong” opinion, RED President Steve Hendrickson discusses the importance of gathering all the facts before assigning blame for the Texas Presidents’ Day power outage.
Estimates vary, but the cold weather in Texas and the Plains states curtailed up to 4 million barrels per day of crude oil production and 21 billion cubic feet of natural gas, according to analysts.
The Texas Railroad Commission, though, likely does not have the authority to interfere with contracts between companies to sell gas out of state, says Commissioner Jim Wright.
Bullish Wall Street banks expect crude oil prices to rise as high as $100 as the world economy rebounds.
Global benchmark Brent futures are trading above $65 per barrel, quadrupling in value since pandemic lows in April.
Texas Governor Greg Abbott ordered the restrictions on out-of-state supplies of natural gas from Texas through Feb. 21, citing the weather emergency. Mexico is Texas’ main out-of-state customer for gas.