Crude oil prices climbed to their highest in about seven years on Tuesday, driven by a global supply shortage and robust demand in the US. The international benchmark Brent crude oil futures gained 41 cents (0.5%) to $86.40 per barrel, while US WTI crude gained 89 cents (1.1%) to $84.65 per barrel. Those marked the highest closes for both futures since October 2014.
The rally came, although market participants and analysts estimated US oil inventories to have risen by nearly 2 million barrels last week. The American Petroleum Institute (API) and the US Energy Information Administration are due to release their US oil stock data on Tuesday and Wednesday, respectively.
Goldman Sachs expects Brent at near $90 per barrel toward the end of the year, with other forecasters projecting Brent at $100 per barrel. Analysts said global oil supply would continue to lag demand as OPEC+ producers stick to their cautious production policy. The group has been resisting growing pressure from consumers for additional supplies. At the same time, US shale producers continue prioritising capital discipline over expanding their upstream output.
