Gains in oil futures eased on Tuesday, February 16 as Brent rose 0.11% to $62.85/bbl, and WTI closed 0.12% higher at $60.07/bbl.
US oil production declined by 2 mbpd in February due to abnormally cold weather, according to American media sources, citing experts. Moreover, the US Energy Department forecasts that as a result of the February freak storm and the suspension of oil production in Texas, the decline in the country’s oil production may even spill over into March, as output will be slow to get back on track.
While the polar vortex gripping the US is gradually weakening, the oil market still remains bullish, with Brent gaining another 0.68% this morning, after retracing to a high of $63/bbl, while WTI added 0.52%, heading towards the $61/bbl mark. Our expectations for the Brent price remain in the broad range of $62.8-64.0/bbl.