Experts explain how oil prices climbed overnight and why it probably won’t last without travel
BISMARCK, N.D. (KFYR) - Experts say the spike in oil prices to above $60 a barrel is due largely to winter weather in Texas, which has limited oil operations, driving the price higher.
Plus, the need for heating oil rose drastically in Texas, lifting prices which were already trending higher due to the vaccine rollout and economic optimism. Experts say windmills that provide energy froze up, which increased the demand for natural gas.
“On the short term this is a helpful price bump, but this cold weather snap is not part of a long-term demand trend. This cold will come and go by the end of the week. But likely, other elements need to come in to keep the price of oil rallying,” said Eugene Graner of Heartland Investor Services Inc.
The increased oil demand is good for our state’s oil production sectors. But, Graner says it likely won’t last unless demand for travel comes back.
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