Temperatures dropped drastically last week across the U.S. and Western Europe, prompting a marked upsurge in energy demand. Record lows were reached in many states as the coldest weather in over 30 years continues to grip the U.S, with more than 150 million people remaining under a weather alert.
The severe temperatures have caused a sudden jump in energy consumption across the most affected states, causing power outages and blackouts. The bolstered demand for energy affected the price of crude as well, with the commodity breaking out above the psychological resistance at 60.00 at the end of last week.
The weather forecasts expect the cold weather to persist in the U.S. and western Europe over the next few days, likely keeping the demand for crude high. This is good news for bulls hoping for consolidation of the price action above 60.00.
The weather looks poised to remain the most decisive factor for the price of the commodity in the near term, given that there are not many economic events scheduled for the next few days that could affect the underlying price. Meanwhile, crude's rally continues to advance parallel to Bitcoin's own hike, as investors remain interested in high-risk securities.
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