Oil prices jumped more than $ 1 on Tuesday. Prices have been supported by optimism about the launch of COVID-19 vaccines and the slow return of falling production after US supply ceased last week due to the freezing cold in Texas.
Shale oil producers in the south of the US ceased producing more than 2 million barrels of crude per day, as frozen pipes and power cuts slowed recovery from cold weather. Production can take at least two weeks to restart.
Brent crude was up $1.10, or 1.7%, at $66.34 a barrel by 0437 GMT, after earlier hitting a high of $66.79. West Texas Intermediate (WTI) crude rose 92 cents, or 1.5%, to $62.62 a barrel, having reached a session high of $63.
Both benchmarks have risen more than 2% on Tuesday after climbing nearly 4% in the previous session.
The positive momentum in the oil complex and the continuing upward trend of investors continue.
Analysts increased their Brent crude oil price forecast for the second and third quarters of 2021 by $ 10, and the expected low stocks began to become a good reason to restart costly upstream activities. Brent prices are expected to reach $ 70 per barrel from anticipated $ 60 in the second quarter and from $ 65 to $ 75 in the third quarter.
The cessation of the freeze effect effectively guarantees that the summer recovery in crude oil demand will eliminate the abundance of supply, so it is not hard for oil prices to rise.
Global oil demand now appears to be much better, as first doses of the Pfizer vaccine showed positive results. The UK sees the light at the end of the pandemic, with hospitalizations and deaths continuing to decline after peaking in early January.