Power, Gas and Petroleum prices rallied this month after the extremely cold temperatures caused blackouts across the state of Texas. These outages negatively affected utility customers & oil refineries and gas prices reached heights not seen in a very long time.
The outages caused some refineries to shut down operations or reduce slightly. There was a report of at least 2.6 million barrels per day confirmed to be shutting down. The impact to refineries is likely to be higher, with some reporting massively reduced operations.
These same conditions also reduced crude and natural gas output. But, most of the projected reduction in barrels per day of US oil production could be restored very soon as estimated by S&P Global Platts Analytics.
The natural gas market rally was mostly contained to undersupplied regions that were affected most by the cold.
It’s likely that energy in power, gas, petroleum and crude will be good as a continued investment for the mid and long term. As we come out of the extreme weather other political actions will affect supply and costs that we are closely monitoring to ensure our strategy is best suited to market fluctuations.