What began as a power issue for a handful of U.S. states is rippling into a shock for the world’s oil market, APA-Economics reports citing Bloomberg.
More than 4 million barrels a day of output – almost 40% of the nation’s crude production – is now offline, according to traders and executives. One of the world’s biggest oil refining centers has seen output drastically cut back. The waterways that help U.S. oil flow to the rest of the world have been disrupted for much of the week.
“The market is underestimating the amount of oil production lost in Texas due to the bad weather,” said Ben Luckock, co-head of oil trading at commodity giant Trafigura Group.
At first, traders and consultants expected a hit to U.S. production that would last between two and three days. Now it’s looking unlikely that things will start to recover much before the weekend, and a full resumption could take weeks.
Source: Azeri-Press News Agency