Cold Blast Wreaks Havoc In U.S.: ETFs To Win & Lose

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A severe cold snap wreaked havoc in the central and southern parts of the United States, with extremely low temperatures not seen in decades and a dangerous blast of snow and ice. This has paralyzed many corners of the economy, which has just started to recover from the pandemic crisis.

The temperature in Dallas is already colder than in Anchorage, Alaska, CBS News reports. According to forecasts by the Weather Company, high temperatures in the Dallas/Fort Worth metropolitan area are expected to be below freezing from Feb 14 through Thursday, Feb 18, and reach only 35 degrees Fahrenheit (“F”) on Feb 19. The low temperature in Dallas is expected to bottom around 1 degree F. The last time temperatures dipped below 5 degrees F was 88 years ago.

The National Weather Service has issued winter and ice storm warnings for millions of Americans. It said the storm is expected to travel up the Northeast through Feb 16, bringing heavy snow, ice, and freezing temperatures.

In such a scenario, some corners of the investing area have been in the spotlight with a few expected to benefit from the extreme cold weather while a few others may lose.

Oil

The coldest weather in 30 years badly hit Texas — by far the country's largest crude producer — shutting oil refineries and forcing restrictions from natural gas pipeline operators. Oil production in Midland, the capital of the Permian basin, fell as much as one million barrels a day. According to consultant Energy Aspects Ltd., some of the biggest refineries in North America were shut down with more than 3 million barrels of daily oil-processing capacity idled amid the record-setting cold.

WTI jumped to $60 per barrel for the first time since January 2020 while Brent climbed to above $63 per barrel. As such, United States Oil Fund (USO - Free Reportand United States Brent Oil Fund (BNO - Free Reportare expected to see smooth trading this week.

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