Brent crude surged past levels of $65 per barrel as the old wave in the US has hit almost 40% of production of the commodity in the US. Futures in London jumped as much as 1.8% at the open after closing at the highest in almost 13 months.
The last time crude prices traded at these levels was in January 2020 before the energy markets were hit by the coronavirus pandemic.
As per dealers and traders in the segment, amid the cold wave, the US supply of as much as 4 million barrels has been disrupted. The cold wave has lead to freezing of well operations as well as led to power cuts. Also, due to refinery outages, there was been seen a hit on the demand for crude in the nation.
The supply side constraint has also started to roil global energy flows. Also, the oil prices will further be boosted as per the American Petroleum Institute which reported an almost 6 million-barrel drop in U.S. crude stockpiles before official government data due later on Thursday.