OIL PRICE EXCEEDS $65 PER BARREL OF EXTREMELY COLD WEATHER IN TEXAS

18.02.2021
Market News

Brent oil prices have surpassed the price of $ 65 a barrel for the first time since January 2020 following crude oil production by the United States experiencing the worst decline in records due to extreme cold weather in Texas.

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Extreme cold weather has caused the US central region to experience power outages, leading to crude oil production declining to more than 4 million barrels a day. Some of the affected refineries, however, have reduced their demand for crude oil supply.

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For the benchmark West Texas Intermediate (WTI), oil prices hit a high of $ 62.26, the highest level since January 8, 2020 before falling to $ 61.60 a barrel at 3.44pm GMT + 8.

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According to Hiroyuki Kikukawa, general manager of the research division at Nissan Securities, he said oil prices were driven by expectations that the disruption in Texas might last for a while. He added that hopes for the US economic stimulus package and the distribution of the Covid-19 vaccine will keep oil prices in a "bullish" trend.