While crude futures declined on Friday, global benchmark Brent has rallied to its best-ever start to a year. Next week, OPEC and its allies will meet to decide on output levels, with market gauges indicating strength. WTI is $62.28; Brent is 65.87
Futures in New York rose to near $63 a barrel. Inventories of U.S. oil have fallen by 40 million barrels over the last three weeks, with cold-weather demand for heating fuels offsetting a rise in gasoline and crude stockpiles. The futures curve is continuing to indicate tightness. WTI is $63.61; Brent is $67.16
There’s been a spate of optimism across the oil market in recent weeks, with key players talking up the prospect of higher prices later in the year. Pent-up demand as the global economy recovers has even got some traders talking about the prospect of returning to $100 over the next year or two. WTI Crude is $62.04; Brent is $65.90
The global oil market has been under-supplied by 2.8 million barrels a day so far this year, Morgan Stanley said, boosting its Brent forecast for the third quarter to $70 a barrel. Goldman has raised its estimate for the same period to $75, while Socar said $100 was possible in the next 18 to 24 months. WTI Crude is $62.11; Brent is $65.66
A robust recovery in demand from the Covid-19 pandemic had pushed prices to the highest settlement in more than a year last Wednesday. Some market makers see the rally accelerating as consumption outpaces supply from OPEC+ and shale. WTI is $59.75; Brent is $63.46
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