Crude oil prices on global fuel exchanges will not decline – the ICE benchmark Brent crude exceeded $ 80 a barrel – for the first time since October 2018. WTI on the New York Stock Exchange already exceeds $ 76. According to brokers, oil reserves are dwindling and the supply of oil cannot meet demand.
A barrel of West Texas Intermediate oil, shipped in November to the NYMEX fuel exchange in New York, is worth $ 76.07, up 0.55 percent.
Brent crude, supplied in November to the ICE Futures Europe fuel exchange in London, costs $ 80.14 a barrel, up 0.77% after rising to $ 80.35 a barrel.
Oil prices are rising in response to a sharp rebound in global fuel demand following the worldwide introduction of coronavirus vaccines.
Banks and analysts are increasingly optimistic about even higher crude oil prices in the context of rising natural gas prices, which could prompt consumers to look for alternatives, which could be crude oil.
Commonwealth Bank of Australia analyst Vivek Dhar estimates global oil demand could rise by 500,000. barrels per day, as high prices for natural gas are forcing changes in energy sources.
What will OPEC do?
Meanwhile, the OPEC cartel countries and their allies, including Russia, are showing great caution in lowering restrictions on their oil supplies, and this creates increasingly difficult conditions for supply to fuel markets.
OPEC will publish its World Petroleum Forecast today, which will set out a group assessment of the situation in the oil market.
“It looks like the oil rally still has a few pillars,” says John Driscoll, chief strategist at JTD Energy Services Pte.
“The backbone in the oil markets is still strong enough and demand is growing. “So far, there are no signs that the rise in prices in the oil markets will stop,” he adds.
Goldman Sachs analysts raised their forecast for Brent prices by $ 10 to $ 90 per barrel. They added that OPEC + cannot restore the balance in the oil market.
Goldman Sachs analysts note that the shortage in the oil market will not be restored in the coming months, as its magnitude stifles both the desire and the ability of OPEC + to increase supply.
BP estimates that global oil consumption will return to pre-pandemic levels in the third quarter of 2022.
“Oil demand is expected to grow by an average of 3.8 million barrels per day,” said BP Singapore President Eugene Leong.
Since the beginning of 2021, the price of crude oil in the United States has risen by more than 80 percent.