- WTI is up 39c to $62.09/Bbl, and Brent is up 39c to $65.63/Bbl
- Texas refiners begin to restart refineries, assess damages
- At least seven different refineries were trying to restart on Monday, according to Bloomberg
- It could still take several weeks to get refineries up and running, supporting gasoline prices in the near-term. Processing capacity fell by an estimated 5.5 MMBbl/d during the height of the freeze
- At least three tankers signed up to ship gasoline and jet fuel to the U.S. last week, in contrasts with one tanker in January. The downed refineries have caused gasoline prices to rally, opening an arb opportunity for Asian producers
- Trafigura sees oil markets tightening in the coming months
- The trading group cited the underestimation of last week's freeze on oil supply, coupled with an improving demand picture from the vaccine rollout, as drivers of the forecasted tightness
- An estimated 40MMBbls of February output will not be produced this month, with refined products following suit
- BofA calls for Brent ceiling of $70/Bbl this year
- OPEC+ cuts were responsible for removing an estimated 180 MMBbls in 1Q2021. The freeze in Texas should reduce global inventories by an additional 50 MMBbls
- The bank expects the global benchmark to average between $50-$70 through 2026, mentioning prices could spike to $100 during that period on global stimulus and an improved supply and demand outlook