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Thursday, March 4, 2021

Crude Oil Prices Spike as Supply Chain Fails

Brent Crude continued to climb higher on Thursday, with US prices settling at $61.52 as refineries in Texas remained closed during the Midwest’s freeze out.

Brent Crude (BRN00) is up today at $64.40 (+0.17%), marking gains of $10 in just three weeks. US prices (CL.1) lapsed briefly this morning but are up again at $61.25 (+0.20) due to production in Texas refineries grinding to a halt.

Investors have expressed concerns about the rise in crude oil prices after the Organization of Petroleum Exporting Countries (OPEC) announced a ramp-up in April production to meet energy demands. Crude oil prices have ignored this news entirely, along with further speculation that Saudi Arabia will end its voluntary crude production cuts.

Texas continues to experience energy issues, affecting approximately 3 million people with rolling blackouts caused by pipeline freezes. 

ExxonMobil, one of the largest oil manufacturers in Texas, has shut down their Baytown and Beaumont locations which can together produce close to a million barrels of crude oil per day.

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