After a week’s gain early this session due to cold spell, oil prices saw a flipside on February 18. Brent crude oil dropped to $64.23 per barrel and West Texas Intermediate crude fell to $61.06 per barrel.
The unprecedented frost has caused a halt in roughly one-fifth of the U.S. refining quantity and outage in oil and gas production throughout Texas. A chief analyst at Sunward Trading said the cold snap prompted concerns for supplying fuels. Analysts believe that the frost might impact crude oil production for weeks as nearly 1 million bpd of crude output are shut.
Crude oil stocks in the U.S. saw a decline up to 5.8 million barrels to some 468 million barrels.
Over the recent weeks, oil prices have recovered as a result of expected U.S. stimulus and world supplies increase.