[ad_1]
Oil prices rose today, Monday, for the fifth day in a row, and Brent hit its highest level since October 2018, heading towards $ 80 a barrel, amid supply concerns. at a time when demand is increasing in parts of the world with the relaxation of anti-pandemic measures.
Brent crude rose $ 1.15, or 1.5%, to $ 79.24 a barrel at 9:00 a.m. GMT, after recording its third consecutive weekly increase last week.
U.S. crude rose $ 1.07, or 1.5%, to $ 75.05 a barrel, close to its highest price since July, after recording its fifth consecutive weekly increase last week.
Goldman Sachs has raised its forecast for Brent crude by year-end from ten dollars to 90 dollars a barrel as demand for fuel picks up at a faster pace than expected amid the impact of the spread the delta mutator of the Corona virus and the impact of Hurricane Ida on US production, which resulted in reduced global supplies.
“We have long had a positive outlook for oil prices, but the supply-demand deficit is currently larger than our expectations, with global demand recovering from the delta shift faster than our previous consensus forecast and global supply remaining below our expectations. levels lower than our previous forecast, “said Goldman Sachs.
US inventories are near their lowest level in three years, and at the same time, it looks like rising natural gas prices will boost demand for oil as users switch fuel.
Oil has grown by more than 80% in the past year as global demand has recovered from the disruptions caused by the pandemic. On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, have slowly eased the brakes on production. Additionally, extreme weather conditions in the United States hampered local production.
As we enter the fourth quarter and the onset of winter in the northern hemisphere, a group of market watchers registered further price gains. Goldman Sachs said the market deficit was larger than expected and raised its year-end forecast for Brent crude from $ 10 to $ 90 a barrel, while Citigroup said it remained “frankly optimistic about crude oil as well as for gas, “according to forecasts. goods.
On Monday, US natural gas futures rose for a third day as inventory levels remained low ahead of the heating season.
The OPEC + alliance is due to meet on October 4 to review production policy after being locked into an oversupply of 400,000 a day in recent months. Before that, OPEC is due to publish the group’s annual World Oil Outlook on Tuesday.
Source link
