• Brent crude was trading at $83.20 a barrel at 0212 GMT, up 81 cents, or 1%, after gaining about 4%
• Crude oil in the United States rose $1.15, or 1.5 percent, to $80.50 a barrel, the most since late
2014. By Friday, the price of U.S. crude had risen by 4.6 percent.
As nations strive to recover from the coronavirus pandemic, oil prices increased on Monday, extending multiweek gains despite supply constraints from major suppliers and rising demand for fuels. Brent crude was trading at $83.20 a barrel at 0212 GMT, up 81 cents, or 1%, after gaining about 4% last week. Oil prices in the United States were up $1.15, or 1.5 percent, to $80.50 a barrel, the most since late 2014. By Friday, the price of U.S. crude had risen by 4.6 percent.
The Post-Pandemic Scenario:
Brent has climbed for five weeks and U.S. crude has risen for seven, as more vaccinated populations are taken out of lockdowns and drive economic activity.
As economies are recovering, gas and coal prices have risen, making oil more appealing as a fuel for driving crude and power generation markets higher. However, when inventories in the United States begin to build again following recent drawdowns, oil prices may begin to sag.
In a note, Caroline Bain, chief commodities economist at Capital Economics, wrote, “We anticipate crude prices will struggle to climb much higher this quarter and still forecast them to progressively drop next year.”
Last week, crude stocks in the United States increased for the second consecutive reporting week, as more production resumed following hurricane-related shutdowns.
Last week, the Organization of Petroleum Exporting Countries (OPEC) and its partners, known as OPEC+, agreed to continue a steady and gradual increase in output.