(MENAFN- The Peninsula) Oil seesawed yesterday while heating oil hit a more than four-month high as severe cold weather crimped output at three US refineries, raising worries about higher crude supplies and a possible squeeze on refined products.
At least three refineries that account for more than two-thirds of the US East Coast's output experienced significant disruptions due to single-digit temperatures that sent the entire Northeast into a deep freeze.
Bets on a further drop in the US oil rig count and short-covering in US crude futures ahead of the expiry of the front-month contract provided some support to oil, traders said.
"It's sell crude, buy products today," said Dominick Chirichella, senior partner at the Energy Management Institute in New York.
"The issues with the East Coast refiners have certainly been weighing on the market, though people will also be wary of the rig count data due later in the day and the possible activity in U.S. crude before March futures expire."
The March contract in US West Texas Intermediate (WTI) crude, which will go off the board at Friday's settlement, was down 45 cents at $50.71 a barrel by 11:51am EST (1651 GMT).
Benchmark Brent crude for April was up 8 cents at $60.29, after falling to a week low of $57.80 on Thursday.
Brent's premium to US crude rose to almost $9 a barrel, the widest in nearly six months.
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