Oil drops as investors gauge big chill impact on U.S. refineries, OPEC+ output rise | Reuters

Oil drops as investors gauge big chill impact on U.S. refineries, OPEC+ output rise | Reuters

Oil prices slid more than 1% on Friday, adding to overnight declines, on worries that refineries will take time to resume operations after the big freeze in the U.S. South, creating a gap in demand, while OPEC+ supplies were expected to rise.

“The market was ripe for a correction and signs of the power and overall energy situation starting to normalise in Texas provided the necessary trigger,” said Vandana Hari, energy analyst at Vanda Insights.

Brent crude futures dropped 87 cents, or 1.4%, to $63.06 a barrel, by 0744 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 82 cents, or 1.4%, to $59.70 a barrel.

Both benchmark contracts rallied to 13-month highs on Thursday driven by the historic freeze in U.S. southern states. While analysts estimate the extreme cold has shut in as much as one-third of U.S. crude production, attention has now turned to the impact on refiners.