Oil prices extend rally on Texas supply disruptions

Oil prices advanced further on Wednesday, underpinned by major supply disruption in the south of the United States this week, caused by a historic winter storm in Texas.

U.S. West Texas Intermediate (WTI) crude futures rose 41 cents, or 0.68%, to $60.46 a barrel at 0752 GMT.

Brent crude futures gained 44 cents, or 0.69%, to $63.79 a barrel.

Oil prices have run up strongly in recent months and output disruptions caused by the storm in Texas, the country's largest oil producing state, continued to keep prices supported, analysts said.

But the extreme cold has also hit crude demand due to disruptions to refinery operations, Reuter reported.

OPEC+ oil producers are likely to ease curbs on supply after April given a recovery in prices, OPEC+ sources told Reuters. Arabia's voluntary cut of 1 million bpd ends next month. While Riyadh hasn't shared its plans beyond March with its OPEC+ partners, expectations in the group are growing that Saudi Arabia will bring back the supply from April, perhaps gradually.

U.S. oil inventory data from the American Petroleum Institute industry group and the Energy Information Administration (EIA) will be released on Wednesday and Thursday respectively, delayed by a U.S. holiday on Monday.