US Oil Prices Rising Due to Cold Weather in Texas and Brent is Stable

Oil prices hovered today near a 13-month high on the back of sudden cold weather that caused the closure of wells in Texas, the largest oil producing state in the United States, while a wage deal in Norway avoided a supply disruption in Europe, curbing gains.

Prices also increased with the announcement by the Yemeni Houthi group, which is allied with Iran, that it launched attacks on Saudi Arabia, which raised concerns related to supplies in the largest oil exporter in the world, while prices also received support from optimism driven by the Coronavirus, about the global economic recovery from the Covid pandemic 19.

US West Texas Intermediate crude futures gained 41 cents, or 0.7%, to reach $ 69.88 a barrel, after touching their highest levels since early January 2020. US markets were closed on Monday due to a federal holiday in the United States.

Brent crude fell 7 cents, or 0.1%, to $ 63.23 a barrel, after hitting its highest level since January 2020 in the previous session.

The cold weather in the United States caused disruption of oil wells and refineries in Texas on Monday and imposed restrictions on operators of crude and natural gas pipelines, causing power cuts to about 4 million homes and companies.

Texas produces about 4.6 million barrels of oil per day, and it has 31 refineries, the largest number in one US state, including some of the largest in the country, according to US Energy Information Administration data.

Yesterday, the World Health Organization included the COVID-19 vaccine, which was developed by AstraZeneca and the University of Oxford, in its list of emergency use vaccines, expanding access to this relatively inexpensive vaccine in developing countries.