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Oil markets rose for the sixth consecutive session on Tuesday, supported by tight supplies and a strong demand outlook, but China’s power shortage hampered industrial production limited the increase.
Brent crude futures rose 67 cents, or 0.8%, to $ 80.20 a barrel at 10:16 a.m. GMT, after hitting their highest level since October 2018 at $ 80.75. Brent gained 1.8% on Monday.
US West Texas Intermediate crude futures rose 79 cents, or 1%, to $ 76.24 a barrel, after hitting a high of $ 76.67, the highest since early July. It jumped 2% the day before.
Hurricanes Ida and Nicholas, which swept across the Gulf of Mexico in August and September, damaged platforms, pipelines and processing centers, shutting down most offshore production for weeks.
Barclays raised its forecast for Brent and West Texas Intermediate prices in 2022 to $ 77 and $ 74 per barrel, respectively.
The recent rise in oil prices came amid a wave of bullish price expectations from banks and traders, further gains in natural gas, and speculation that the energy sector was n ” is not investing enough in fossil fuels to maintain supplies at current levels.
Oil has skyrocketed this year as the introduction of vaccines to fight the pandemic helped increase demand for energy, leading to lower U.S. inventories. The massive increase in natural gas prices has raised bets that crude oil will benefit from increased demand as users search for alternatives.
As global demand increased, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, have cautiously eased supply restrictions. Later Tuesday, OPEC will release its World Oil Outlook, which will detail the group’s views on market fundamentals.
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