Oil Rises to Fresh MultiYear Highs on Demand Recovery

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Oil prices rose on Friday to fresh multiyear highs and were set for their third weekly jump on expectations of a recovery in fuel demand in the United States, Europe and China as rising vaccination rates lead to an easing of pandemic curbs.

Brent crude futures edged up 21 cents to 72.73 a barrel to 1000 GMT, a day after closing at their highest since May 2019.

U.S. West Texas Intermediate WTI crude futures were up 15 cents to 70.44 a barrel, a day after their highest close since October 2018.

U.S. investment bank Goldman Sachs expects Brent crude prices to reach 80 per barrel this summer as vaccination rollouts boost global economic activity.

The International Energy Agency said in its monthly report that OPEC oil producers would need to boost output to meet demand set to recover to prepandemic levels by the end of 2022.

OPEC needs to open the taps to keep the world oil markets adequately supplied, the Parisbased energy watchdog said.

It said that rising demand and countries39; shortterm policies were at odds with the IEA39;s call to end new oil, gas and coal funding.

In 2022 there is scope for the 24member OPEC group, led by Saudi Arabia and Russia, to ramp up crude supply by 1.4 million barrels per day bpd above its July 2021March 2022 target, the IEA said.

Data showing road traffic returning to preCOVID19 levels in North America and most of Europe was encouraging, ANZ Research analysts said in a note.

Even the jet fuel market is showing signs of…

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