WTI Crude surpasses US$90/bbl as frigid weather cascades across the US

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WTI Crude surpasses US$90/bbl as frigid weather cascades across the US

Rising oil prices
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Highlights

  • Crude oil prices rose on Thursday.
  • The prices of WTI Crude Oil surpassed US$90 per barrel for the first time since 2014.
  • Bad weather conditions in the US are likely to hamper production.

Crude oil prices surged staggeringly on Thursday, kicking the prices of WTI Crude Oil to surpass US$90 per barrel for the first time since 2014 amid ongoing supply crisis and frigid weather cascades across the US.

The prices rose a day earlier too, following the decision of OPEC and its allies to carry forward their plan of increasing the output for the coming months.

April delivery Brent Crude oil futures last traded at US$91.41 per barrel up 0.51%, whereas March delivery WTI crude oil futures traded 0.62% up at US$90.82 per barrel as of 4 February 2022 at 12:31 PM AEDT.

The prices were additionally buoyed by the lower supplies from the leading oil producers of the globe.

Cold weather in the US

Analysts across the globe believe that the late rally in crude oil was linked to rising concerns related to the cold weather conditions in Texas which are expected to impact production. More than 2,000 people have lost power across the US due to the cold.

Oil prices

Source: Copyright © 2022 Kalkine Media®

The market is also concerned about supplies which can be hampered by intensifying tension between the US and Russia on the Ukraine matter.

Bottom Line

Crude oil prices rose on Thursday with the prices of WTI Crude Oil hitting more than US$90 per barrel, the highest since 2014 due to adverse weather conditions in the US. 

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