Icy temperatures in parts of the US gave new momentum in the rally in energy markets, putting West Texas Intermediate crude on track to exceed $ 60 a barrel for the first time since the early days of the Covid-19 pandemic. come.
WTI crude oil futures rallied 1.8% Monday morning to reach $ 60.53 a barrel, extending their advance to 25% in 2021. Brent crude, the international benchmark, climbed 1.2%, reaching a 13-month high of $ 63.20 a barrel in London. Natural gas futures at Henry Hub in Louisiana were up 3.3% to $ 3.01 per million British thermal units.
The new leg in the energy market recovery from the coronavirus shock came as a cold-weather explosion that increased demand for power and fuel, while oil production in Texas was in danger of being disrupted. More than 150 million Americans are under some sort of winter advisory, the National Weather Service said Monday. The agency predicts heavy snowfall and significant ice from the Southern Plains and Ohio Valley to the Northeast.
Some analysts think investors have pushed oil prices above levels justified by supply and demand, but others expect them to hold up.
“We haven’t seen any surprising factor that would stop this kind of rally, at least not yet,” said Carole Nakhle, CEO of Crystol Energy consultancy. Demand is recovering, stocks of crude oil that exploded last year are dwindling and the Organization of the Petroleum Exporting Countries is holding millions of barrels per day off the market, she added.