Oil climbs as U.S. output slowly resumes after deep freeze
Oil prices climbed on Monday as the slow rebound of U.S. crude production following a deep freeze raised worries about fuel demand recovery amid the coronavirus pandemic.
Brent crude rose 1.2%, or 76 cents, at $61.67 per barrel following a 1% gain last week. U.S. oil gained 1.3%, or 74 cents, at $59.98 per barrel after dropping 0.4% last week.
A deep freeze in Texas and the Plains states forced the closure of up to 4 million bpd of oil production and 21 billion cubic feet of natural gas output.
Oilfield crews are expected to de-ice valves and restart production in several days. U.S. Gulf Coast refiners are evaluating damage to facilities. It might take a total of three weeks before all operations are restored.
U.S. drilling companies reduced the number of operating oil rigs due to the cold in Texas and other energy producing centers for the first time since November.