- WTI is up 32c to $61.99/Bbl, and Brent is up 49c to $65.86/Bbl
- Texas driller restore 80% of crude output following last week's freeze
- Production in the Permian Basin in Texas is at about 2.9 MMBbl/d, up from 600 MBbl/d during the height of the storm, according to OilX. The region typically produces around 3.5 MMBbl/d
- The recovery comes after grid operators restored power across much of the state. Occidental petroleum, the Permian's second-largest producer, said that 90% of its output is back online on Tuesday
- Keystone XL pipeline cancellation prompts interest in crude-by-rail
- Oil export by rail has tripled since July, and the trend is expected to continue after the Biden Administration killed the pipeline
- Gibson Energy Inc, an oil transportation company, signed a 10-year contract with ConnocPhillips to process oil-sands crude before loading it on crude train terminals
- With the Keystone Pipeline canceled, Western Canadian crude will likely have to be discounted even more to account for the increased transportation cost
- EIA weekly data is due at 9:30 am CST
- U.S. Crude Inventories: - 6,742 MBbls (Avg. Bloomberg surveys)
- U.S. Gasoline Inventories: - 3,515 MBbls
- U.S. Distillate Inventories: - 4,718 MBbls
- U.S. Refinery Utilization: - 6.99% change