Oil prices are poised for further highs this week, as rising vaccination rates are leading to higher mobility in the US and Europe, with global demand estimated up 1.5 million barrels per day in the last month to 96.5 mb/d.
The OPEC has said it expected oil demand to rise by six million bpd this year, and the International Energy Agency forecast it would add 5.4 million bpd this year and another 3.1 million bpd next year, returning to and exceeding pre-pandemic levels to reach 100.6 million bpd by the end of 2022.
Brent, the international benchmark for two-thirds of the world’s oil, rose 1.11 percent to the highest finish since May 21, 2019 to close the week at $72.69 a barrel.
Likewise, the US West Texas Intermediate (WTI) crude futures scored 1.85 percent weekly rise to reach $70.91 a barrel. The price for Opec Basket was recorded at $70.90 a barrel, Arab Light was available at $72.12 a barrel while the price of Russian Sokol reached $72.96 a barrel.
Meanwhile, Goldman Sachs has reiterated its forecast that Brent crude will hit $80 per barrel this summer as demand quickly recovers.
The IEA said in a report on Friday that producers will need to increase output to keep up with demand recovery.
It expects demand to rise in 2021 before growing at a faster rate next year, reaching 100 million barrels a day (mb/d) by the end of 2022.
According to the energy agency, there’s scope for the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to boost production by 1.4 mb/d above its July 2021 to March 2022 target.— TLTP