Oil Prices Rose 1% on Monday

On Monday, Oil Prices rose more than 1% to multi-year highs, owing to constrained global supply and growing gasoline demand in the United States and elsewhere. By 11:19 a.m. EDT, Brent oil futures had risen $1.01, or 1.2%, to $86.54 a barrel. The contract hit an all-time high of $86.70 per barrel during the session, the highest since October 2018.

WTI oil futures in the United States increased $1.04, or 1.2%, to $84.80 a barrel, after reaching an all-time high of $85.41 a barrel in October 2014. Since the beginning of September, both benchmarks have risen by roughly 20%. The US Oil Prices have climbed for nine weeks, while Brent has been increased for seven.

Louise Dickson, senior oil markets analyst at Rystad Energy. Said that the global energy supply constraint continues to show its fangs. She noted that traders are pricing in the continuous surge in fuel demand, draining global stocks with weak supply responses. A robust resurgence in global oil demand, according to Goldman Sachs, may drive Brent crude prices above their year-end projection of $90 per barrel. Switching from gas to oil, according to the bank, could add at least 1 million barrels per day to oil demand.

After more than a year of low demand, gasoline and distillate consumption in the United States, the world’s top fuel user, has returned to five-year averages. find out more Worries about coal and gas shortages in China, India, and Europe have boosted Oil Prices, prompting a shift to diesel and fuel oil for power generation. “There are numerous reasons for today’s performance, but one of them is fuel switching,” said Bob Yawger, Mizuho’s director of energy futures.