Brent Crude Skyrockets Over 50% for 2021
Sep 28, 2021 By MarketDepth
Brent Crude, one of the world’s largest benchmark prices for oil, rose above USD80 per barrel on Tuesday. This is the first time it reaches this level since October 2018, as demand increases and supply remains low.
Five Weeks of Gains
Furthermore, West Texas Intermediate crude futures, another U.S. oil benchmark, also shot up to USD76.28 per barrel. Both have now experienced five consecutive weeks of gains.
“A persistent supply deficit is leading to an ever tighter oil market, with OECD inventories likely to end the year at the lowest level of demand cover in decades,” analysts at Barclays wrote Tuesday in a note to clients. The firm raised its 2022 targets for Brent and WTI to USD77 and USD74 per barrel.
Increase in Demand
Moreover, Goldman Sachs now expects Brent to reach USD90 per barrel by year’s end, after previously forecasting Brent at USD80 per barrel by the end of the year. Global oil supplies are constricted upon the quick increase in demand as a consequence of the Covid-19 outbreak as well as Hurricane Ida’s effect on 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 global demand from the Delta impact even faster than our above-consensus forecast and with global supply remaining short of our below consensus forecasts.”Goldman Sachs Stated
The energy sector is September’s best S&P 500 group, and has risen over 10%.