Oil prices rose to multi-year highs before the weekend on Monday, helped by tight global supply and rising fuel demand in the United States and beyond as the economy recovers from the pandemic recession.
Brent crude futures rose 81 cents, or 1 per cent, to $86.34 a barrel after rising 1.1 per cent last Friday. Earlier on Monday they hit $86.43, the highest price since October 2018.
WTI crude futures (West Texas Intermediate, US) rose 86 cents, or 1%, to $84.62 a barrel after rising 1.5% on Friday. They hit their highest since October 2014 at $84.76 earlier on Monday.
Both benchmarks closed last week with small gains despite a rise in coronavirus cases in the United Kingdom and Eastern Europe, signalling a potentially difficult winter ahead.
"It looks like prolonged declines in global stocks are still expected in the coming months, and only lower demand growth could change the underlying sentiment," said Somchai Wongrat, lead analyst at Thai โบรกเกอร์ Exness.
Goldman Sachs said a sharp rebound in global oil demand could push Brent crude prices above its year-end forecast of $90 a barrel. The bank estimates that a switch from gas to oil could boost oil demand by at least 1 million barrels per day (bpd).
After more than a year of falling fuel demand, gasoline and distillate consumption has returned to five-year averages in the United States, which is the world's largest fuel consumer.
Meanwhile, U.S. energy companies last week cut oil and natural gas drilling rigs for the first time in seven weeks despite higher oil prices , energy company Baker Hughes Co. said Friday.
Financial managers increased their net long positions in U.S. crude futures and options for the week to Oct. 19, the U.S. Commodity Futures Trading Commission (CFTC) said Friday, underscoring strong market sentiment.
Oil prices were also supported by concerns over coal and gas shortages in China, India and Europe, leading to a switch to diesel and fuel oil for power generation.
You are the best….much love.
I love an Ism-Free space! Peace and light.
This is a great policy because now you can make sure that people who don’t agree with you can’t challenge you in front of everyone. You’re awesome!! xxx peace and liberty and love.
actually, it’s a great policy because i don’t have to deal with nitwits like you who think that you’re entitled to be heard simply because you have awesome thoughts about how awesome Greenwald is and also, too free Bradley Manning. You insulted a co-blogger. This is my blog. You don’t have a right to be here. Go back to Salon.
Toodles!
Too many people out there in the world think they have some sort of right to piss on someone else’s living room floor in full view of the entire assembly. Fuck that noise. Stab ‘em hard, ABL.