Brent crude, the global benchmark, surpassed $ 80 a barrel on Tuesday, amid signs that demand is in advance on supply, running out of stocks due to a global energy crisis.
The global benchmark rose for a sixth consecutive day, hitting its highest level since October 2018, as West Texas Intermediate crude extended its gains to surpass $ 76.
The recent rise in oil prices has occurred in amid a flurry of bullish price expectations from banks and traders, more gains in natural gas, and speculations that the energy industry is not investing enough in fossil fuels to keep supplies at current levels.
Oil has skyrocketed questyear, as the introduction of vaccines to fight the pandemic helped to increase energy demand, leading to a decline in US inventories. The massive rise in natural gas prices has raised bets that crude oil will benefit from expanding demand as users search for alternatives.
As global demand has 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 report, which it will describe in detail the group’s views on market fundamentals.
Read More About: Business News