WTI Crude Oil Trades Bullish Over Rising Supply Concerns
WTI crude oil prices are on the rise as extremely cold weather forced oil wells and refineries to shut down across Texas - the leading crude
Early on Tuesday, WTI crude oil prices are on the rise as extremely cold weather forced oil wells and refineries to shut down across Texas – the leading crude producing state in the US even as tensions simmer in the Middle East. At the time of writing, WTI crude oil is trading at around $60.26 per barrel.
A rare deep freeze phenomena has not only halted crude production in Texas but also hampered operations of natural gas and crude pipelines. In addition, power suppliers in the state have had to enforce rotating blackouts, affecting almost three million households and businesses.
In addition to the supply challenges in the US, crude oil prices are also trading strong on the back of escalating concerns about geopolitical tensions in Yemen and Saudi Arabia. The Iran-aligned Houthi group confirmed during the previous session that it had launched successful drone attacks against Saudi airports, raising fears that crude production in the region could be impacted.
While supply concerns sent crude oil prices higher, the positive sentiment in markets also received a boost after the WHO approved a new COVID-19 vaccine, created by Oxford University and AstraZeneca, for emergency use. This vaccine is far more inexpensive than those made by Pfizer and Moderna, and could benefit more countries around the world.
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