Oil Continued to Rise in Price Due to the Snow Apocalypse in the United States
OREANDA-NEWS. On the morning of Monday, February 22, oil rose by another 1% on world markets. Analysts believe, that the reason is uncertainty about the recovery of fuel production in the United States. So, a barrel of «Brent» rose in price by 1.29% and is trading at $63.72, and April «WTI» futures rose to $59.93 per barrel, which is more by 1.13% than at the close of the last session. Investors see, that production has partially resumed in Texas, but there is no certainty about a full recovery yet.
Unprecedented 30-degree frosts came to the southern regions of the United States. Heavy snowfall has caused power outages for millions of Americans. Many of them were not prepared for such a rampage of the elements, so heating pipes burst in their homes and dozens of people died from hypothermia.
The authorities of Texas temporarily banned the disconnection of electricity to debtors, and also suspended the mailing of electricity bills. The cold weather in the state led to the fact, that residents for a week burned the annual budget for electricity. The wholesale price per megawatt soared from $50 dollars to $9 thousand. There is no central heating in Texas, and homes built from drywall are often heated only by air conditioning. It is noted, that those Texans who do not have a fixed, but a floating tariff for electricity pay the most. They receive bills for thousands of dollars.