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Brent crude was up 51 cents, or 0.8%, at $63.42 a barrel by 0945
GMT, after gaining nearly 1% last week. U.S. oil rose 45 cents,
or 0.8%, to $59.69 a barrel, having fallen 0.4% last week.
Abnormally cold weather in Texas and the Plains states forced
the shutdown of up to 4 million barrels per day (bpd) of crude
production along with 21 billion cubic feet of natural gas
output, analysts estimated.
Oilfield crews will probably take several days to de-ice valves,
restart systems and begin oil and gas output. U.S. Gulf Coast
refiners are assessing damage and may take up to three weeks to
restore most of their operations, analysts said, though hampered
by low water pressure, gas and power losses.
"With three-quarters of fracking crews standing down, the
likelihood of a fast resumption is low," ANZ Research said in a
note.
For the first time since November, U.S. drilling companies cut
the number of oil rigs operating due to the cold and snow
enveloping Texas, New Mexico and other energy-producing centres.
OPEC+ oil producers are set to meet on March 4, with sources
saying the group is likely to ease curbs on supply after April
given a recovery in prices, although any increase in output will
likely be modest given lingering uncertainty over the pandemic.
"Saudi Arabia is eager to pursue yet higher prices in order to
cover its social break-even expenses at around $80 a barrel
while Russia is strongly focused on unwinding current cuts and
getting back to normal production," said SEB chief commodity
analyst Bjarne Schieldrop.
(Reporting by Noah Browning and Aaron Sheldrick; Editing by
Kirsten Donovan and Louise Heavens)
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