Prices of US Oil, Power, & Gas Turns Higher After Storm
Winter storm is wreaking havoc in the USA, which has also affected the energy sector across the United States of America. As a result of this calamity, the price of electricity and heating has gone up during the holiday season.
The winter storm has brought with it a lot of snow and below-zero temperatures. The intensity of the storm was so severe that 1.5 million businesses and homes lost access to power. In addition, the oil refineries in the Texas region also had to shut down due to equipment failure. Once again, this contributed to an increase in power and heating prices across the USA.
The refining capacity was also affected by around 1.5 million barrels per day due to the winter storm. Although the production losses are only for a limited time, it has raised the short-term prices of fuel in the USA.
The energy companies whose production facilities were affected are Marathon Petroleum, TotalEnergies, and Motiva Enterprises. In addition, the production of Valero Energy, LyondellBasell, and Exxon Mobil were also affected. These production facilities were involved in the production of jet fuel, diesel, and gasoline.
As a result of this, the oil prices in the USA increased by 2.4% and touched $79.56 per barrel. Similarly, the West Texas gas saw an increase of 22% and touched $9. If we look at the Texas grid, the power prices also increased and touched $3700/megawatt hour.
For now, work is underway to restore the energy in various areas of the United States of America. Similarly, the high prices of energy products will also return to normal after the affected facilities are back to normal. However, this has also revealed how fragile the energy sector is in the USA.
Elsewhere, the oil-producing countries are in no mood to raise oil production as that would lower energy prices. However, this has put a serious dent in the economy of various countries which rely on energy imports.