- Oil prices climbed above $80 (£59) a barrel, hitting their highest level in three years as the pound slumped.
- Brent crude, the international benchmark, rose to as much as $80.69 on the day, the most since October 2018.
- Prices have been rising for seven consecutive days on the back of the energy crisis in Europe.
- Analysts believe that oil prices will continue to rise amid surging demand and tight supplies.
Brent oil roared above $80 a barrel, the latest milestone in a global energy crisis, on signs that demand is running ahead of supply and depleting inventories, reports BBC.
Flurry of bullish price predictions
The international crude benchmark hit the highest since October 2018, before paring some earlier gains to trade close to $80. West Texas Intermediate also climbed.
Oil’s latest upswing has come with a flurry of bullish price predictions from banks and traders, forecasts for surging demand this winter, and speculation the industry isn’t investing enough to maintain supplies.
The jump to $80 is adding inflationary pressure to the global economy at a time when prices of energy commodities are soaring. European natural gas, carbon permits and power rose to fresh records Tuesday, with little sign of the rally slowing.
Oil rebound amid record output
Oil has rebounded from its eye-watering collapse last year amid record output curbs from the OPEC+ group and a global economic recovery that has boosted demand.
Prices could hit $90 this year as stock drawdowns deepen, Goldman Sachs Group Isays, while Bank of America Corp has talked up an outside chance of hitting $100 over the winter. The oil market is a “different picture from the one that was there a month or six weeks ago,” Bake said.
He added, “Demand has been good. Oil substitution is happening a lot as natural gas just runs and spirals pricing-wise.”
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Source: BBC
