Global oil prices rose more than 1 percent on September 27 morning, with the price of November futures for Brent exceeding $79 for the first time since 2018, thanks to the observed increase in demand coupled with the expectation of a lag in supply, according to trading data, Report informs referring to Prime agency.
As of 8:52 (GMT+4), the price of December futures for Brent crude rose by 1.14 percent to $78.11 per barrel. At the same time, the cost of November futures increased by 1.2 percent, to $79.03 per barrel, and earlier during trading on September 27, it reached $79.52. The indicator exceeded $79 per barrel for the first time since October 23, 2018.
November futures for WTI crude rose in price at the same time by 1.23 percent, to $74.89 per barrel. The indicator earlier in the course of trading exceeded $75 per barrel - for the first time since July 14 this year.
Oil has risen more than 80 percent over the past year as worldwide demand recovers from the disruption caused by the pandemic. On the supply side, the Organization of Petroleum Exporting Countries and its allies, including Russia, have been easing output curbs only slowly, permitting markets to tighten. In addition, extreme weather in the US has crimped local production.
Crude “continues to be supported by broader concerns over tightness in energy markets,” said Warren Patterson, head of commodities strategy at ING Groep NV. “Demand is looking as though it will be stronger than expected in the near term.”