Oil Hovering Near Highest Level in 13 Months as US Production Was Hit by a Storm

Oil prices extended their gains for the fourth consecutive session and reached their highest levels in more than 13 months, supported by the US Central Bank’s assertion that interest rates will remain low, and a sharp drop in US crude production last week due to the storm that swept across Texas.

Brent crude futures for April delivery increased 33 cents, or 0.5%, to $67.37 a barrel, and West Texas Intermediate crude for April delivery rose 23 cents, or 0.4%, to $63.45 a barrel.

The two crude contracts touched their highest levels since January 8, 2020, earlier in the session, as Brent crude reached $67.49 a barrel, and West Texas crude oil reached $63.67 a barrel. The April Brent crude contract expires on Friday.

The US dollar retreated due to the Fed’s assurance that interest rates would remain low for a while, even if this strengthened the risk appetite of investors and global stock markets.

The Energy Information Administration said on Wednesday that US crude production fell by more than 10%, or the equivalent of one million barrels per day, last week due to a severe winter storm sweeping through Texas.