Oil prices rose on Friday to new multi-year highs and were set for their third weekly jump on expectations of a rebound in fuel demand in the US, Europe and China as rising vaccination rates lead to a reduction in pandemic restrictions.
Brent crude futures rose 13 cents to $72.65 a barrel to 1,145 GMT, a day after closing at its highest since May 2019.
U.S. West Texas Intermediate (WTI) crude oil futures rose 14 cents to $70.43 a barrel, one day after their highest close since October 2018.
US investment bank Goldman Sachs expects Brent oil prices to hit $80 a barrel this summer as the vaccine launch boosts global economic activity. see More information
The International Energy Agency said in its monthly report that OPEC+ oil producers would need to increase production to meet demand set to recover to pre-pandemic levels by the end of 2022.
“OPEC+ needs to turn on the taps to keep the world’s oil markets adequately supplied,” 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 financing for oil, gas and coal. see More information
“By 2022, there is room for the 24-member OPEC+ group, led by Saudi Arabia and Russia, to increase oil supply by 1.4 million barrels per day (bpd) above its July 2021-March target 2022,” said the IEA.
Data showing road traffic returning to pre-COVID-19 levels in North America and most of Europe was encouraging, analysts at ANZ Research said in a note.
“Even the jet fuel market is showing signs of improvement, with flights in Europe increasing 17% in the last two weeks, according to Eurocontrol,” said ANZ analysts.
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