Oil has hit a new 13-month high, which could also push inflation up if it feeds through to fuel prices.
Brent crude is up 1.6% at $64.47 per barrel, the highest since January 2020. It’s now rallied by more than 60% since the start of November (when it was trading below $40), as Covid-19 vaccines lifting hopes of a rebound in oil demand this year.
The jump in the oil price is being driven by major disruption caused by the winter storm in Southern US states such as Texas.
Some refineries and oil wells have been forced to temporarily shut down due to the snow and ice, which has killed at least 21 people and left millions of homes stranded without power.