Arab Press

بالشعب و للشعب
Friday, Jun 20, 2025

Will the Texas cold wave push oil closer to $100 a barrel?

Will the Texas cold wave push oil closer to $100 a barrel?

While the disruptions so far seem small and localized, they come at a time of crude shortages and soaring prices.
The extreme cold that’s descended across Texas is prompting some oil producers in the Permian Basin to halt a small part of their output as icy roads disrupt critical trucking operations.

One large Permian driller had about 4,000 barrels a day of crude production shut because of the weather, according to a person familiar with the situation, who asked not to be named as they’re not allowed to discuss it publicly. The shut-ins were partly because of the weather’s impact on the wells, and partly due to the lack of trucks to gather the crude, the person said.

Another company that was expecting to receive roughly 25,000 barrels of oil by truck on Wednesday hasn’t seen those supplies, and isn’t expecting to see the deliveries again on Thursday, another person said. Several drillers use trucks to collect the crude from wells before it’s shipped by pipeline from a distribution hub.

While most of the oil from Permian operations is gathered by pipeline and the disruptions so far seem small and localized, they come at a time when shortages have emerged in several major producing nations and are helping keep crude at seven-year highs. Record output in the world’s most prolific shale play hasn’t been enough to allay concerns about a tight global market, leading some Wall Street banks to predict oil prices of $100 a barrel later this year.

Futures in New York traded near a fresh seven-year high of $89.72 a barrel reached on Wednesday.

The subzero temperatures in Texas have also impacted operations at natural gas processing plants, people familiar with the situation said. Earlier, the El Paso Natural Gas pipeline notified its customers that it was experiencing a loss of supply in the Permian due to winter weather and freeze-offs.

Most crude producing wells generate some volume of gas, so if gas facilities are impacted by the extreme cold and can’t take supplies, some oil producers could be forced to shut wells.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Saudi Arabia Faces Uncertainty Over Succession After Mohammed bin Salman
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Majority of French Voters View Macron's Presidency as a Failure
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Businessman Mauled by Lion at Luxury Namibian Lodge
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
×