"Abnormally cold temperatures in the US, particularly Texas, have forced a significant share of US oil wells and refineries offline this week," note Capital Economics analysts.
Key quotes
"Oil prices initially surged on the back of this disruption, but they have since retraced most of their gains. In fact, they may even edge lower in the coming weeks if refinery activity takes longer to come back online than production."
"Next week, most investor attention will probably be focused on US President Joe Biden’s State of the Union Address where he is expected to unveil details of a green-intensive infrastructure package dubbed the American Recovery Plan. While Biden’s proposal may provide an initial boost to metals prices, there is no guarantee that Congress will pass the legalisation and, in any case, the money would be spread out over a long period of time."
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