Oil Hits OneMonth Highs as IEA, OPEC Raise Forecasts

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Oil prices rose on Thursday to the highest level in nearly a month, after jumping 5 in the previous session, driven by increased demand forecasts from the International Energy Agency IEA and OPEC as major economies recover from the pandemic.

Brent crude was up by 16 cents at 66.74 a barrel by 0659 GMT, after reaching 66.94 earlier, the highest since March 18, and gaining 4.6 on Wednesday.

U.S. West Texas Intermediate futures rose 12 cents to 63.27 a barrel, earlier rising to 63.48, also the highest since March 18. The contract rose 4.9 in the previous session.

Supply discipline and rebounding economies are set to give oil a chance to break out of the recent range, Goldman Sachs analysts said in a report.

We remain positive on Brent oil forecasting US80bbl in 3Q21 on a nearterm demand recovery and supply discipline, Goldman analysts said.

The U.S. investment bank also brought forward its predicted peak for global oil transport demand by one year to 2026, due to the rising penetration of electric vehicles as economies push for decarbonisation.

Even so, it does not forecast peak oil demand this decade due to growth in petrochemicals and aviation fuel markets, although it expects overall oil demand beyond 2025 to be anaemic mainly due to electrification.

Global oil demand and supply are set to be rebalanced in the second half of this year after the COVID19 pandemic destroyed demand in 2020, the IEAs monthly report said.

Producers may then need to pump a further 2…

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