Crude oil prices climbed to their multi-year highs on Monday amid a global supply tightness. The international benchmark Brent crude futures rose by 46 cents to settle at $85.99 per barrel, while US WTI crude futures were steady at $83.76 per barrel. In the previous session, Brent hit $86.70 per barrel, its highest level since October 2018, while WTI settled at $85.41 per barrel, the highest since October 2014. Both futures have risen by about 20% since the beginning of September. Brent and WTI have risen for seven and nine consecutive weeks, respectively.
Analysts said gasoline and diesel consumption is back after more than a year of depression, thanks to the recovery in the global economy. Oil prices have also been underpinned by concerns over soaring coal and gas prices, which prompted power producers to switch to diesel and fuel oil. Goldman Sachs estimated the switch could result in extra oil demand of at least 1 million bpd. The bank said the strong rebound in global oil consumption could push Brent to around $90 per barrel toward the end of 2021.
