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 without electricity.
Brett Coomer | Houston Chronicle | AP
Energy prices continued to climb, while the North Pole froze deep in the south on Wednesday, leaving up to three million people in the state without power.
West Texas Intermediate oil prices rose 2% in morning trading, while futures contracts rose nearly 3%, though natural gas rose lower as the crisis in Texas and several other states continued. The futures contract for oil heating was also higher.
With “oil resources and refineries on the right track, we could come under a significant shortage for a number of days, which will further intensify supply at a time when it is already limited and demand is expected to return,” Craig said. Erlam, senior market analyst at OANDA, wrote.
“However, this is only a short-term mistake, and therefore we do not see a major impact on oil prices, which is starting to show signs of overbought,” Erlam added. “It should not be a big shock after a 70% period since the beginning of November. A lot of optimism about the economic recovery is now being praised, so that the market may have to prepare for a minor correction.”
The exceptionally severe winter storms left more than 3 million in Texas without power, along with nearly 100,000 in Kentucky and more than 70,000 in West Virginia, according to PowerOutage.us.
The power outages raised questions about the stability of the power grid, prompting members of Congress to hear why the system was failing.
“Ultimately, those responsible for the operation and management of our energy network will have to answer for the notable collapse of our energy infrastructure and inadequate communication with the public,” said Rep. Of Taylor, R-Texas, said in a statement.