Brent crude oil nears three-year high

By MSV On Sep 27, 2021

(FILES) This file photo taken on November 24, 2020, shows a view of a damaged silo at the Saudi Aramco oil facility in Saudi Arabia's Red Sea city of Jeddah. - A drone strike sparked a fire at a Riyadh oil refinery, in an attack claimed by Yemen's Huthi rebels as the Iran-backed insurgents made major advances on the embattled Yemeni city of Marib. (Photo by Fayez Nureldine / AFP)

Oil prices rose for a fifth straight day on Monday with Brent at its highest since October 2018 and heading for $80 amid supply concerns as demand picks up in parts of the world with the easing of pandemic restrictions.

Brent crude was up $1.63 or 2.1% at $79.72 a barrel by 1403 GMT, having posted three straight weeks of gains.

U.S. Oil added $1.56, or 2.1%, to $75.54, near its highest since July, after rising for a fifth straight week last week.

Goldman Sachs raised by $10 its forecast for Brent crude at the end of this year to $90 per barrel, as faster fuel demand recovery from the outbreak of the Delta variant of the coronavirus and Hurricane Ida’s hit to U.S. production led to tight global supplies.

“While we have long held a bullish oil view, the current global supply-demand deficit is larger than we expected, with the recovery in global demand from the Delta impact even faster than our above-consensus forecast and with global supply remaining short of our below consensus forecasts,” Goldman said.

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