People line up to fill their empty propane tanks on Tuesday, February 16, 2021, in Houston. Temperatures remained below freezing on Tuesday, and many residents were left without electricity.
Brett Coomer Houston Chronicle | A?
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 without energy.
West Texas intermediate oil prices rose 2% in morning trade, while gasoline futures rose nearly 3%, although natural gas fell as the crisis in Texas and other states continued. Future heating oil was also higher.
With “oil wells and offline refineries, we could face a significant shortfall for a few days, further tightening supply at a time when it has already been restricted and is expected to return,” wrote analyst Craig Erlam. senior market leader in the Netherlands.
“This is only a short-term problem, so we do not see a more significant impact on oil prices, which are beginning to show signs of being over-bought,” Erlam added. “This should not be a major shock after a 70% rally in early November. A lot of optimism about the economic recovery is now pricey, so the market could be prepared for a minor correction.”
Unusually severe storms have left more than 3 million in Texas without electricity, with nearly 100,000 in Kentucky and more than 70,000 in West Virginia, according to PowerOutage.us.
Power outages have raised questions about the stability of the power grid, prompting some members of Congress to call for hearings on why the system has 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 to the public,” said Rep. Van Taylor, R-Texas, in a statement.