Brent crude rises to almost three-year high as supplies tighten due to high demand

NEW YORK. Oil prices gained for a fifth straight day yesterday, with Brent at its highest since October 2018 and heading for $80, as investors fretted about tighter supplies because of rising demand in parts of the world.

Brent crude was up $1.38, or 1.8 per cent, to $79.47 a barrel by 1510 GMT, having posted three straight weeks of gains. US crude futures rose $1.35, or 1.8 per cent, to $75.33 a barrel, its highest since July, after rising for a fifth straight week.

Global supplies have tightened due to the fast recovery of fuel demand from the outbreak of the Delta variant of the coronavirus and Hurricane Ida’s hit to US production. “While we have long held a bullish oil view, the current global supply-demand deficit is larger than we expected, with the recovery in demand faster than our above-consensus forecast,” Goldman said.