Oil prices jumps by more than a dollar a barrel as US production falls due to Texas Snow

Oil prices rose by more than a dollar a barrel on Wednesday, as freezing weather in Texas curbed supplies in the major US oil producing states.

Brent crude rose 99 cents, equivalent to 1.6 percent, to determine the settlement price at $ 64.34 a barrel, while US West Texas Intermediate crude increased $ 1.09, or 1.8 percent, to close at $ 61.14 a barrel.

Oil derives support from OPEC + supply restrictions, additional cuts from Saudi Arabia, and hopes for a recovery in demand thanks to Covid-19 vaccines.

Prices received an additional boost from unprecedented cold weather in Texas, which pumps a large part of US crude production and is part of the main US refining industry center.

“This is a new move,” said Bob Yawger, director of energy futures at Mizuho in New York. “It is likely that WTI will reach around $ 65.65.”

Industry experts say freezing weather in the United States has shut down an estimated 1 million barrels per day and could disrupt production for days, if not weeks.