NEW YORK, Feb. 24 (Xinhua) -- Oil prices rose on Wednesday after data showed a marked reduction in U.S. output as a result of massive closures of production facilities due to frost in Texas.
The West Texas Intermediate for April delivery added 1.55 U.S. dollars to settle at 63.22 dollars a barrel on the New York Mercantile Exchange. Brent crude for April delivery increased 1.67 dollars to close at 67.04 dollars a barrel on the London ICE Futures Exchange.
U.S. crude oil production decreased during the week ending Feb. 19, U.S. Energy Information Administration (EIA) said Wednesday.
According to the EIA, U.S. crude oil production averaged 9.7 million barrels per day (b/d) last week, 1.1 million b/d less than the previous week and down by 3.3 million b/d from this time last year.
There were concerns that it would take some time for production to return to normal after the frost damage in Texas. Yet, Eugen Weinberg, energy analyst at Commerzbank Research, said "it's important not to be misled by short-term news reports."
"The only factor relevant for the oil price is likely to be that the Texan oil industry suffered no long-term damage," he said in a note on Wednesday, adding "at present, market participants would do better to keep an eye on the reactions and production data of OPEC and its allies (OPEC+)."
The Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed in January to keep most oil production curbs in place from February to the end of March. They are expected to discuss their future strategy next week. Enditem
