Brent oil held gains in Asia after closing at the highest level in more than a year as electricity blackouts caused by freezing weather in Texas disrupted flows from the biggest U.S. shale patch.
Futures in London traded above $63 a barrel after rising 1.4% Monday. The power cuts have spread to central parts of the U.S. in a deepening crisis that’s already crippled the Texas electrical grid. Some of North America’s biggest refineries were shut down Monday, with more than 3 million barrels of daily oil-processing capacity idled, according to consultant Energy Aspects Ltd.
It’s the latest in a series of cold snaps that have given a larger-than-expected boost to oil consumption this year. The North Sea oil market, which helps price more than two-thirds of the world’s crude, also saw its biggest spate of bullish activity in years. Meanwhile, there’s a chance that Norwegian supply will be disrupted with talks to avert a refinery strike going past a deadline.
