Energy shares led market gainers as oil prices finished higher for the 11th time in 12 sessions.
A brutal winter storm in the South has forced oil companies there to halt much of their production. This could lead to weeks of bullish declines in U.S. crude-oil inventories.
More than 2 million barrels a day of U.S. oil output have been shut down, mostly in Texas, the largest oil-producing state, said analysts at Commerzbank. The hit to refinery operations appears to be even greater, they said, shutting off as much as 3 million barrels a day.
Natural gas prices also rose for a third straight session, climbing to a three-month high as gas producers in Texas face mounting operational problems due to the worst winter storm to hit the Lone Star state in decades. Everything from equipment failure to icy, unusable roads to safety issues for workers has forced large curtailments in gas output, while cold temperatures cause demand to surge.
Additionally, a weekly EIA storage report due tomorrow is likely to show a huge decline in inventories that could narrow a stubbornly-wide storage surplus to just 2% above the five-year average.
Meanwhile, Saudi Arabia plans to increase its oil output in the coming months, reversing a recent big production cut, say advisers to the Kingdom, a sign of growing confidence over an oil-price recovery.
In corporate news, Chevron shares were higher after billionaire Warren Buffett's Berkshire Hathaway disclosed a stake in the oil giant, according to a snapshot of investments held in the quarter ended Dec. 31.
Tailwater Capital agreed to acquire NorTex Midstream Partners, betting that natural-gas storage will become increasingly important to help power operators compensate for the intermittent supply of renewable energy sources.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
02-17-21 1706ET
