Last month, several leading oil refineries were forced to shut down due to a natural disaster. The "Ice Age" which came at the end of the cold season in Texas, took a toll on the energy industry in the largest US crude-producing state. Record freezing temperatures "froze" energy inventories, created force majeure conditions for pipelines, and damaged expensive equipment. As a result, about 5.5 million barrels a day of crude processing capacity was suspended.
The long-awaited news that the country's production slowly returns to normal came from the United States on March 8. As of this day, 7 out of 18 refineries affected by frigid conditions have already started operations. Among them are such large enterprises as Valero Energy and Motiva Enterprises. This means that the ice has broken on the stock exchange as well.
According to Bloomberg news agency, crude oil is almost ready to return to its price level set in the US before Texas freeze. The demand for key crude grades has already started to boost rapidly. For example, the Seven Sisters produces more than 2 million barrels per day in crude exports. Other key enterprises in the region are also expected to restart this week.
However, the return of large buyers to the market is not the only reason for an increase in oil demand, experts say. Another cause is related to growing foreign interest in US physical oil. The surge in foreign clients was driven by the OPEC + decision. Recall that at the meeting held in early March, the group approved the continuation of current production levels for April, except that Moscow and Nur-Sultan would be allowed to increase production.
Currently, US crude oil is growing in popularity in neighboring Canada, as well as in Europe, India, and South Korea, the agency said. As for one of the most active market players, China has been keeping a cool head so far. Experts attribute this to the fact that the country is bursting with stockpiles of the raw material.
