Brent oil rises toward $64 with power crisis hitting US supply

Brent oil rises toward $64 with power crisis hitting US supply

Brent oil edged higher in Asia after closing at the highest in almost 13 months as a deepening energy crisis in the US disrupted crude production and forced the shutdown of some of the nation's biggest refineries.

Futures in London climbed toward $64 a barrel after rising 1.4 per cent on Monday. Freezing weather has crippled Texas's power system and the blackouts are spreading to other states in the central US. More than a million barrels a day of oil output has been halted and pipelines have declared force majeure. Energy Aspects Ltd. estimates around 3 million barrels a day of processing capacity could be offline.

The combination of frigid temperatures and refinery closures has spurred a scramble for fuels and is likely to lead to higher American prices for everything from gasoline to propane. The US crisis is just the latest in a series of cold snaps in the northern hemisphere that have boosted oil consumption this year.

In Europe, the North Sea oil market, which helps price more than two-thirds of the world's crude, also saw its biggest spate of bullish activity in years on Monday. There's a chance, meanwhile, that Norwegian crude supply will be disrupted after talks to