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Oil jumps more than 3% as U.S. output is set for slow return following storm

Oil prices gained more than 3% on Monday, driven by the expected slow return of U.S. crude output after last week’s deep freeze in Texas shut in production.

U.S. producers shut anywhere from 2 million to 4 million barrels per day of oil output due to the bad weather in Texas and other oil producing states, and the unusually cold conditions may have damaged installations that could keep output offline longer than expected.

Brent crude was up $2.04, or 3.2%, at $64.95 a barrel, while U.S. oil rose $2.25, or 3.8%, to settle at $61.49 a barrel. The U.S. benchmark crude contract for March delivery expires on Monday, and the more widely-traded April contract was up $1.91, or 3.2%, at $61.19 a barrel.

Shale oil producers in the region could take at least two weeks to fully restart normal output, sources said, as damage assessments and power disruptions slow their recovery.

Reference: CNBC