The Brent oil futures, approaching the $80 mark amid supply concerns as parts of the world sees demand pick up with the easing of pandemic conditions.
The global benchmark, the Brent crude is up 1.22%, currently trading at $78.17 a barrel. This comes after gaining for the third consecutive week through Friday. U.S. benchmark, the West Texas Intermediate (WTI) is bullish at 1.22% to $74.88 a barrel, near its highest since July, after rising for 5 straight weeks.
In an interview with Bloomberg, Jeff Currie explained that the tightening of gas supplies in Europe will elevate the demand for oil as an alternative at a time when global crude output is constrained. He used the post-hurricane disruptions in the U.S. Gulf of Mexico as an example to take home his point.
This forecast comes after the banking giant had predicted $80 per barrel for oil in the summer citing higher demand for travel and acceleration of vaccinations in Europe are set to result in “the biggest jump in oil demand ever, a 5.2 million barrels per day (bpd) rise over the next six months.”
Credit: Nairametrics
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