Oil gains $1 as deep freeze curbs U.S. crude output

Oil prices gained nearly $1 on Thursday, extending this week’s gains and reaching 13-month highs as a cold front shut down Texas oil wells and refineries, curbing a million barrels of crude production. 

Brent crude rose 1.5%, or 93 cents, at $65.27 per barrel, its highest since Jan. 20, 2020. U.S. West Texas Intermediate crude futures climbed 1.2%, or 76 cents, at $61.90 per barrel, its strongest level since Jan. 8, 2020.

Both contracts gained nearly $1 on Wednesday and rose over 6% since Thursday’s close. The deep freeze hitting the United States could curb crude output for several days or weeks, analysts said.

U.S. crude oil stocks dropped by 5.8 million barrels to 468 million barrels in the week ended Feb. 12, compared with analysts’ forecasts for a 2.4-million-barrel drawdown. 

U.S. Energy Information Administration oil stockpile data will be announced later on Thursday. 

Oil prices rallied in recent weeks on hopes for a U.S. stimulus and as global supplies tighten due to OPEC+ output cuts.