The deep freeze that hit Texas last month is one of the reasons why oil prices hit new highs recently. The Texas disruption due to the freeze shut down one fifth of the US’s refining capacity and closed down oil and natural gas production in the state.
Oil hit $70 a barrel recently before falling back a bit. With vaccines offering lockdown lifts, demand for oil is expected to rise thus offering more chance of a price bounce.
Since mid March the oil rally has stalled and the price per barrel has sunk down to nearly $62 for Brent Crude futures. Markets are now fearful that the demand going forward is not there...
