Oil prices have begun to approach their highest level in 13 months, following a 6% increase since last Thursday's close.
American crude production may be disrupted for a period due to a sudden cold spell in Texas, a concern that has supported new buying in crude. Brent crude rose by 89 cents, or 1.4%, to $65.23 per barrel, nearly reaching its highest levels since January 20, 2020. Meanwhile, U.S. West Texas Intermediate crude futures gained 66 cents, or 1.1%, to $61.80 per barrel, marking their highest level since January 8, 2020.
Chiu-ki Chan, chief analyst at Sunward Trading, stated that an unexpectedly large draw in U.S. oil inventories has further intensified concerns over supply. According to data from the American Petroleum Institute, U.S. crude inventories fell by 5.8 million barrels in the week ending February 12 to around 468 million barrels, compared to analysts' expectations of a 2.4 million barrel decline. Additionally, OPEC+ informed Reuters that group producers are likely to ease supply restrictions after April due to the recovery in prices.
