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.
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.
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.
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.