Oil rises as cold front shuts U.S. oil wells, curbs refineries

Oil prices climbed on Tuesday as wells and refineries in Texas, the United States’ biggest crude producer, shut down due to a cold front.

Prices also rose as Yemen’s Iran-aligned Houthi group confirmed it hit Saudi Arabian airports with drones, raising supply worries in the world’s biggest oil exporter. 

Brent crude futures rose 0.6%, or 35 cents, at $63.65 per barrel. It hit its highest level since January 2020 in the last session.

U.S. West Texas Intermediate crude futures climbed 1.4%, or 82 cents, at $60.29 per barrel. WTI prices did not settle on Monday due to a U.S. federal holiday, and will instead settle at the end of trading on Tuesday.

The cold front in the United States forced Texas oil wells and refineries to shut down on Monday and restricted operations on natural gas and crude pipelines.

Meanwhile, Norway’s oil industry employers signed a wage bargain with the Safe labour union on Tuesday, averting a strike at the Mongstad crude terminal and closure of major oil and gas fields.