Oil Holds Gains With U.S. Energy Crisis Roiling Output, Refining
- Cold snap leads to Texas blackouts, forcing refinery shutdowns
- Nearest WTI spread settles in structure indicating oversupply
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Oil held above $60 a barrel in New York while gasoline futures surged as a deepening energy crisis in the U.S. crippled the petroleum industry.
U.S. benchmark crude rose from Friday’s close as the market assessed the impact the country’s cold blast will ultimately have on the supply and demand balance. While the extreme temperatures have curtailed more than 2 million barrels a day of U.S. oil production, demand from refineries is also being crimped, with over 3 million barrels a day of processing capacity idled, according to Energy Aspects Ltd.