People line up to fill their empty propane tanks on Tuesday, February 16, 2021 in Houston. On Tuesday temperatures remained below freezing and many residents were without electricity.
Brett Coomer Houston Chronicle | AP
Energy prices continued to rise as an Arctic explosion kept the south in a deep freeze on Wednesday and left up to 3 million people in the state without electricity.
Intermediate oil prices in West Texas rose 2% in morning trading, while futures on gasoline rose nearly 3%, although natural gas fell as it continued to trade. crisis in Texas and other states. Diesel futures were also higher.
With “offshore oil wells and refineries, we could face a significant deficit for a few days, further reducing supply at a time when demand has already been restricted and demand is expected to return. ”wrote Craig Erlam, senior market analyst at OANDA.
“Still, it’s just a short-term mistake, and that’s why we don’t see a more significant impact on oil prices, which are starting to show signs of overbought,” Erlam added. “This should not be a big shock after a 70% rise since early November. There is now a lot of optimism around the economic recovery, so the market can be prepared for a smaller correction. “.
Unusually severe winter storms left more than 3 million in Texas without electricity, along with about 100,000 in Kentucky and more than 70,000 in West Virginia, according to PowerOutage.us.
Power outages raised doubts about the stability of the power grid, which prompted some members of Congress to convene hearings on why the system failed.
“Ultimately, those responsible for the operation and management of our energy network will have to answer for the flagrant collapse of our energy infrastructure and inadequate communication with the public,” said Rep. Van Taylor. R-Texas, in a statement.