US oil and natural gas prices rise as freezing temperatures leave millions without power in Texas

<p><img src="https://static6.businessinsider.com/image/602ba730b3c2a800183cce27-2400/GettyImages-1231190311.jpg" border="0" alt="GettyImages 1231190311" data-mce-source="Montinique Monroe/Getty Images" data-mce-caption="Temperatures have plunged in Texas, causing energy prices to spike"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>US oil and natural gas prices rose on Tuesday, as freezing cold weather battered Texas's energy infrastructure, leaving millions without power.</p><p><a href="https://markets.businessinsider.com/commodities/news/oil-price'type=wti">WTI crude oil</a> was up 0.52% to $59.77 per barrel as of 6.10am ET. That was just off a more than one-year high of more than $60.80 touched on Monday as plunging temperatures hit Texan oil plants.</p><p><a href="https://markets.businessinsider.com/commodities/natural-gas-price">Natural gas futures</a> were up 5.8% to $3.079 per million British thermal units on Tuesday, trading at around the highest levels since November.</p><p>More than 3 million people have been left without power in Texas and close to 5 million around the US as a whole, according to <a href="https://poweroutage.us/">poweroutage.us</a>, as a rare winter storm sweeps the country.</p><p>Temperatures fell to 4F (-16C) overnight <a href="https://forecast.weather.gov/MapClick.php'textField1=32.78&amp;textField2=-96.8#.YCuk4hP7RhE">in Dallas, Texas</a>, and have plunged across Oklahoma, Kansas, New Mexico, Colorado and elsewhere.</p><p>It has been challenging for Texas's energy grid, which does not pay generators to keep capacity in reserve. The weather has forced many generators to stop production.</p><p><strong data-stringify-type="bold"><em data-stringify-type="italic">Read More:&nbsp;</em></strong><em data-stringify-type="italic"><a href="https://www.businessinsider.com/exclusive-asset-manager-divests-exxon-stocks-climate-concerns-2021-2" target="_blank" rel="noopener noreferrer" data-stringify-link="https://www.businessinsider.com/exclusive-asset-manager-divests-exxon-stocks-climate-concerns-2021-2" data-sk="tooltip_parent" aria-describedby="sk-tooltip-4424">EXCLUSIVE: An asset manager overseeing nearly $100 billion divested from Exxon on concerns it is failing to move fast enough to address climate change</a></em></p><p>Wholesale energy prices have skyrocketed, at times above the market cap of $9,000 per megawatt hour, compared to prices of around $25 to $50 per MWh before the winter storms.</p><p>The frigid temperatures have hit oil production and natural gas supplies and led to a surge in demand for energy, causing prices to spike.</p><p>Heating oil futures - a proxy for diesel - were up 2.58% to $1.817 per gallon on Tuesday morning. Gasoline futures were up 4.11% to $1.7621 a gallon.</p><p>Texas is also home to some of the country's biggest oil refineries, as well as the heart of the shale basin.&nbsp;</p><p>Jeffrey Halley, senior market analyst at currency firm Oanda, said he thought the US oil market had been due a correction after a surge in prices in recent weeks. But he said the current weather situation "will likely continue to offset that."</p><p><strong data-stringify-type="bold"><em data-stringify-type="italic">Read More:&nbsp;</em></strong><em data-stringify-type="italic"><a href="https://www.businessinsider.com/stock-picks-highest-short-interest-retail-squeeze-targets-goldman-sachs-2021-2" target="_blank" rel="noopener noreferrer" data-stringify-link="https://www.businessinsider.com/stock-picks-highest-short-interest-retail-squeeze-targets-goldman-sachs-2021-2" data-sk="tooltip_parent" aria-describedby="sk-tooltip-4426">GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target themand the group has already nearly doubled over the past 3 months</a></em></p><p>"Until the weather moderates in the United States oil is a 'buy on dips' in the short-term."</p><p>Brent crude oil, the international benchmark, was down 0.33% to $63.11 a barrel, still around a one-year high.</p><p>JPMorgan last week predicted a <a href="https://markets.businessinsider.com/news/stocks/commodity-supercycle-outlook-roaring-20s-economic-growth-energy-oil-jpmorgan-2021-2-1030074452">commodities "supercycle"</a> would take hold in 2021, as economies reopen and drive up production and demand for energy.</p><p>The "roaring 20s" will be accompanied by easy monetary and fiscal policy, a weak US dollar and stronger inflation, all supportive for commodity prices, JPMorgan said.</p><p><a href="https://markets.businessinsider.com/news/stocks/oil-price-natural-gas-texas-freezing-weather-energy-2021-2-1030086085#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/what-its-like-to-do-your-own-taxes-for-the-very-first-time-2018-2">July 15 is Tax Dayhere's what it's like to do your own taxes for the very first time</a></p>
Click here to read full news..