RIYADH: Brent crude futures gained 67 cents, or 0.8 percent, to $80.20 a barrel at (10:16 GMT), after reaching their highest level since October 2018 at $80.75, U.S. WTI crude futures rose 79 cents, or 1 percent, to $76.24 a barrel, after hitting a session high of $76.67, its highest since early July. It jumped 2 percent the previous day.
Goldman Sachs raised by $10 its year-end forecast for Brent crude to $90 per barrel. Global supplies have tightened due to the fast recovery of fuel demand from the outbreak of the delta variant of the coronavirus and Hurricane Ida's hit to US production.
“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.
Caught short by the demand rebound, members of the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, have had difficulty raising output as underinvestment or maintenance delays persist from the pandemic.
Global oil demand is expected to reach pre-pandemic levels by early next year as the economy recovers, although spare refining capacity could weigh on the outlook, producers and traders said at an industry conference.
Global demand is seen rising to 100 million barrels per day by the end of 2021 or in the first quarter of 2022, Hess Corp President Greg Hill said. The world consumed 99.7 million bpd of oil in 2019, according to the IEA, before the COVID-19 pandemic hammered economic activities and fuel demand.
In India, oil imports hit a three-month peak in August, rebounding from nearly one-year lows touched in July, as refiners in the second-biggest importer of crude stocked up in anticipation of higher demand.
