Oil prices rose to new multi-year highs on Friday and were set for their third weekly jump on expectations of a recovery in fuel demand in the United States, Europe and China, rising vaccination rates leading to a relaxation of pandemic brakes.
Brent crude futures edged up 13 cents to $ 72.65 a barrel at 11:45 a.m. GMT, a day after closing at their highest since May 2019.
US West Texas Intermediate (WTI) crude futures rose 14 cents to $ 70.43 a barrel, a day after their highest close since October 2018.
U.S. investment bank Goldman Sachs expects Brent crude prices to hit $ 80 a barrel this summer as the vaccine rollout spurs global economic activity. Read more
The International Energy Agency said in its monthly report that OPEC + oil producers should increase production to meet demand that is expected to return to pre-pandemic levels by the end of 2022.
“OPEC + must turn on the taps to ensure adequate supplies to global oil markets,” said the Paris-based energy watchdog.
He said growing demand and countries’ short-term policies were at odds with the IEA’s call to end new funding for oil, gas and coal. Read more
“In 2022, the 24-member OPEC + group, led by Saudi Arabia and Russia, could increase crude supply by 1.4 million barrels per day (bpd) above its target of July 2021 to March 2022, “the IEA said.
Data showing road traffic returned to pre-COVID-19 levels in North America and most of Europe was encouraging, analysts from ANZ Research said in a note.
“Even the jet fuel market is showing signs of improvement, with flights to Europe up 17% in the past two weeks, according to Eurocontrol,” ANZ analysts said.
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