Oil Prices Close Near 13-Month Highs Supported by a Cold Wave in Texas

Oil prices closed on Tuesday, February 16, near their highest levels in 13 months, supported by a very cold wave in the southern United States that closed oil wells and refineries in Texas.

Prices have been on an upward path for months as crude producers restrict supplies and swiftly distribute vaccines to curb the coronavirus pandemic.

West Texas Intermediate crude futures ended the trading session, up 1%, to settle at $60.05 a barrel, after touching its highest level since early January 2020.

The global benchmark Brent crude futures rose five cents, or 0.1%, to settle at $63.35 a barrel, near the 13-month peak it reached in the previous session.

Analysts at Rystad Energy estimated that between 500 thousand and 1.2 million barrels of crude oil production in the United States would be halted due to the cold wave that also shut down some of the largest oil refineries in the United States.

Crude prices were also supported by the announcement by the Iranian-aligned Houthi group that it had launched attacks on Saudi Arabia, which raised concerns about supplies in the world’s largest oil exporter.

The market is awaiting the latest data on oil stocks in the United States, which will be issued by the American Petroleum Institute on Wednesday and from the US Energy Information Administration on Thursday, a day late due to a holiday in the United States on Monday.