UPDATE 9-Oil jumps almost 4% as output slow to recover from Texas storms

(New throughout; updates prices, market activity and comments
to settlement)
By Laila Kearney
NEW YORK, Feb 22 (Reuters) - Oil prices rose nearly 4% on
Monday, boosted by the expected slow return of U.S. crude output
after last week's deep freeze in Texas shut in production.
U.S. producers shut anywhere from 2 million to 4 million
barrels per day of oil output due to cold weather in Texas and
other oil producing states, and the unusually cold conditions
may have damaged installations that could keep output offline
longer than expected.
Brent crude LCOc1 settled at $65.24 a barrel, rising
$2.33, or 3.7%, while U.S. oil CLc1 settled at $61.49 a
barrel, jumping $2.25, or 3.8%. The U.S. benchmark crude
contract for March delivery expires on Monday, and the more
widely-traded April contract was up $2.44, or 4.1%, at 61.70 a
barrel.
Shale oil producers in the region could take at least two
weeks to fully restart normal output, sources said, as damage
assessments and power disruptions slow their recovery.
"The significant loss of both crude and gasoline production
suggests more upside and likelihood of new highs possibly within
a one-week time frame," said Jim Ritterbusch of consultancy
Ritterbusch and Associates. But he cautioned that with limited
refining capacity, price could under pressure if refiners take
weeks to return to normal.
"The market is behaving as if the refiners are going to come
online quicker than the headlines would lead you to believe,"
said Yawger. Gasoline crackspreads, an indicator of refiners'
margins have dropped by 5%.
For the first time since November, U.S. drilling companies
cut the number of oil rigs operating due to the cold and snow
enveloping Texas, New Mexico and other energy-producing centres,
signalling even tighter supplies ahead. RIG/U
OPEC+ oil producers are set to meet on March 4, with sources
saying the group is likely to ease curbs on supply after April
given a recovery in prices, although any increase in output will
likely be modest given lingering uncertainty over the pandemic.
"Saudi Arabia is eager to pursue yet higher prices in order
to cover its social break-even expenses at around $80 a barrel
while Russia is strongly focused on unwinding current cuts and
getting back to normal production," said SEB chief commodity
analyst Bjarne Schieldrop.

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CHART: Brent oil neutral in $62.54-$63.85 range U.S. oil may test support at $58.64 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>