Crude extends slide as Texas oil wells resume productions

SourceEmirates Business
SectorOil & Gas
CountryGulf

Bloomberg Oil fell to the lowest in a week as output slowly resumed in Texas, while margins for processing gasoline surged as Gulf Coast refineries are seen taking weeks to restart operations after the deep freeze. Crude futures in New York plunged $1.28, its biggest decline in dollar terms since late December. Producers including Marathon Oil Corp are using restored power from grids or generators to resume output that was halted by the frigid weather in the Eagle Ford shale basin. Fuel margins jumped with four of the biggest refineries in Texas seen taking several weeks to resume operations, raising the potential for fuel shortages.

“Gasoline crack spreads have exploded, and for good reason,” said Andrew Lebow, senior partner at Commodity Research Group. “Crude production is going to come back up a lot faster than refineries, leaving more crude available than there will be demand for it coming up over the next few weeks.” Oil is still up more than 20%...read more...