Crude oil prices extended gain into the fifth straight day on Monday as investors were concerned about tightening supplies due to the fast recovery of fuel demand in some markets. The international benchmark Brent gained $1.44 (1.8%) to $79.53 per barrel, while US WTI crude futures increased by $1.47 (2%) to $75.45 per barrel, its highest since July. Goldman Sachs raised its forecast for Brent crude to $90 per barrel by the end of 2021, rising $10 per barrel from its previous projection.
Goldman noted that it had long held a bullish oil view as the current global oil supply deficit is larger than previously anticipated. Other analysts said OPEC+ producers are struggling to keep up with the quick demand rebound after the COVID-19 pandemic due to underinvestment or maintenance delays. At the same time, hurricanes dampened offshore output in the US Gulf of Mexico. US supply disruptions are expected to continue underpinning oil prices, as some platforms are likely to remain offline into next year.
Hess Corp President Greg Hill said the world’s oil demand would likely rise to 100 million bpd by the end of 2021 or early 2022. That will be higher than the world’s total oil demand of 99.7 million bpd in 2019 before the pandemic.
