Prices are higher than they were when the pandemic started in March 2020 but demand hasn’t reached its pre-pandemic levels.
According to ANZ Research, the lack of demand from Texan refiners will likely lead to builds in crude stocks over coming weeks.
The one-way move in oil prices snapped on Thursday as some cashed in on this week’s “freeze” trade that sent crude markets higher than they might have otherwise gone. New York-traded West Texas Intermediate crude settled down 1%, or 62 cents, at $60.52 per barrel as players took profit on its run to 13-month highs of $62.27 after the Arctic freeze that crippled part of the oil production in Texas, the heartland of U.S. energy. This has slowed or, in some cases, shut altogether energy production in some places, particularly in Texas, where the freeze was so severe this week that oil and gas just couldn't flow like normal.