US crude oil prices rose during trading today, Monday, in light of the slow return to production levels in the United States after the halts due to the freezing weather in Texas.
US crude oil futures are currently trading at the level of $59.67 a barrel, after it opened trading today at the level of $58.93, and recorded a high of $60.15 a barrel.
This comes after US crude witnessed a decline for two consecutive sessions, during which it recorded its lowest level in a week at $58.56 a barrel.
The slow return of production rates in the United States showed the current weakness in the supply of crude oil in the markets due to the continued negative impact of the Corona pandemic on the crude oil markets, which supported the rise in prices during today's trading.
Prices received another boost as Goldman Sachs raised expectations for Brent crude by $10, as the price is expected to reach $70 during the second quarter and $75 in the third quarter of this year.
The Corporation indicated that the demand for crude oil is better than expected and the supply is still in decline, which creates a deficit greater than expectations in the markets.
As for the slowdown in the return of production rates in the United States, it is due to the cold weather in the US oil-producing states that has caused the shutdown of production of an estimated 4 million barrels per day, in addition to disrupting the production of about 21 billion cubic feet of natural gas.
On the other hand, the US dollar witnessed a recovery during today's trading against a basket of major currencies, but it failed to limit the rise in crude oil prices, due to the crude markets being affected by the levels of supply and current demand in the markets more than they were affected by the levels of the dollar.