Arctic Blast in Texas, Keep Oil Bull’s Grip in Play

Oil traders are going long on macros that reveal supply disruptions in major U.S energy hubs caused by an Arctic blast amid growing concerns that leading oil players might start easing their output cuts in less than two months’ time.

At the time of drafting this report, the U.S based oil contract West Texas Intermediate (WTI) crude futures was trading at $60.24 a barrel printing gains of about 0.25%, although recent price actions point to the fact it retreated from its 13-month high of $60.95 a barrel, sighted on Tuesday.

The black liquid hydrocarbon is rallying high in recent months amid oil supply disruptions caused by a usual winter storm in Texas, America’s largest oil-producing state, although energy pundits are of the bias that such surge currently in play could be temporary as oil prices hint on high signs of likely reversing its recent gains as quickly as the weather patterns change its narrative.

Oil bears seem to be rising their heads up on reports that s a stronger US dollar is now in play, as it gains steam relatively couple with U.S Treasury yields ripping higher and both are rising up to challenge the bullish reflation trend.

That being said, oil traders in the midterm will soon shift to the OPEC+ meeting taking place in early next month.

The all-important meeting will be necessary for oil traders in gauging whether OPEC+ will continue to present a unified front and convey the conviction that it is still enforcing oil supply discipline.

Finally, some economic pundits are of the opinion that higher oil prices in themselves can be a curse to the global growth engine in principle, especially for the substantial consumption engines of leading emerging markets like India, as it seems they are only getting a fraction of relief via the weaker greenback.