Increased demand paired with supply issues has driven the price for oil up to a 13-month high.

A massive cold-front that has swept the US has been the main catalyst for oil prices. As individuals heat their homes the demand for power and fuel has increased when production in Texas is struggling to keep up. West Texas Intermediate crude broke above the $60 per barrel mark for the first time since the pandemic began.

Here's where prices stood as of Monday:

  • WTI crude futures increased 1.1 percent to $60.14 per barrel on Monday
  • Brent crude increased 1.3 percent to $63.26

WTI crude futures are now up around 24 percent since the start of 2021.

“Winter storm and arctic blast of cold weather that is making its way south to Houston may have some severe impacts on the oil industry,” oil analyst Andy Lipow said. “Frigid weather means that many oil wells may be shut in. Water is produced along with oil, that water can freeze up equipment,” he added. “The cold air affects oil production in Canada, North Dakota, Oklahoma, Texas and elsewhere.”

According to the National Weather Service, around 150 million Americans are under a winter weather advisory.

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Economics, Finance and Investing