Benchmark Brent crude gained 38 cents, or 0.6%, to $63.73 a barrel. US West Texas Intermediate crude rose 21 cents, or 0.4%, to $60.26 a barrel.
“WTI clocked in at $60 a barrel this week, joining its transatlantic peer Brent above the psychological level for the first time since January 2020. At this price point, any oil production is profitable,” said Stephen Brennock of broker PVM, CNBC reported.
Oil has been supported in recent weeks by OPEC+ supply curbs and hopes a demand rebound due to Covid-19 vaccinations, but severe cold weather in Texas, the country’s largest oil producing state, has boosted the prices in recent days.
The US deep freeze is expected to disrupt production for several days if not weeks, industry experts, as wellheads have frozen and refineries have been shut.
The stronger price environment has put more attention on OPEC+, which groups OPEC, Russia and allied producers. It meets to set policy on March 4.
“The impact on crude oil prices will largely depend on how long the power crisis will last, but eventually prices will likely return to the fundamentals with a focus on the global energy demand and OPEC+,” said Margaret Yang, a strategist at Singapore-based DailyFX.
OPEC+ oil producers are likely to ease curbs on supply after April given a recovery in prices, OPEC+ sources told Reuters.