Oil prices rose on Monday as the worst of the freeze in the US’s biggest oil-producing state, Texas, has been left behind, leaving investors to now expect market stabilization.
International benchmark Brent crude was trading at $62.87 per barrel at 0712 GMT for a 1.17% rise after closing Friday at $62.14 a barrel.
American benchmark West Texas Intermediate (WTI) was at $59.84 per barrel at the same time for a 0.97% increase after ending the previous session at $59.26 a barrel.
After last week’s freezing temperatures that badly hit Texas and brought the region’s oil wells and the refineries to a halt, operations in the area are slowly resuming.
Although experts say it will take longer for refineries to return to normal due to maintenance works, investors are relieved with the easing of concerns for demand disruptions in the region, which are supporting oil prices.
Investors are also keeping tabs on developments of the $1.9 trillion US stimulus, as members in the US House of Representatives are likely to vote on Biden's proposed package by the end of the week.
However, President Joe Biden's relief plan, which includes $1,400 stimulus checks for individuals and aid for vaccine distribution efforts, still faces opposition from Republicans.
By Sibel Morrow