Oil reaches $84 as lifting of U.S. travel ban boosts demand
Oil rose to around $84 a barrel on Tuesday, gaining for a third session, as the U.S. lifting of travel restrictions and more signs of a global post-pandemic recovery boosted the demand outlook, while supply remained tight.
On Monday, travellers took off for the United States again, while the passing of U.S. President Joe Biden’s infrastructure bill and better-than-expected Chinese exports helped paint a picture of a recovering global economy.
Brent crude was up $1.35, or 1.6%, $84.78 per barrel, after gaining 0.8% on Monday.
U.S. oil advanced $2.22, or 2.7%, to $84.15 per barrel also after a 0.8% rise the previous day.
The price of Brent has risen over 60% this year and hit $86.70, a three-year high, on Oct. 25, supported by supply restraint by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, and recovering demand.
At a meeting last week, OPEC+ decided to stick to its existing pace of easing record output cuts and rebuff U.S. pleas to pump more - helping to keep supply tight for the near term in the view of some analysts.
JPMorgan Chase said global demand for oil in November was already nearly back to pre-pandemic levels of 100 million barrels per day (bpd), following last year’s collapse.
Reference: CNBC
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