West Texas Intermediate crude is on pace to settle above $60 a barrel, the first time since the early days of the coronavirus pandemic. According to CNBC, the oil rally was caused by rise in demand for power and fuel due to cold weather in some parts of the U.S that also threatened production.
- WTI crude futures rose 67 cents or 1.1% to $60.14 a barrel on Monday morning around 10:08 a.m. ET, bringing total gains in 2021 to 24%.
- WTI crude futures touched $60.77 a barrel earlier in the morning session, the highest level since February 2020.
- Brent crude, the international benchmark, rose 1.3% to $63.26 after hitting a 13-month high.
- Freezing weather means many oil wells may be shut, affecting oil production in Canada, North Dakota, Oklahoma, Texas, and elsewhere.
- While the winter storm is not predicted to be as severe as the Category 5 hurricanes, refineries are likely to slow operations and prepare for outages.
- The winter storm has also been linked with a rise in gasoline prices over the last week, which climbed from $2.41 to $2.46.
- The rally in crude prices marks an extension of the oil markets’ rebound since the coronavirus muted demand throughout much of 2020.
Oil futures are currently gaining. CL! is up 1.09%