Crude oil rallies on robust demand and tight supply

2 min read | October 26, 2021 12:26 PM AEDT | By Arpit Verma

Crude oil rallies on robust demand and tight supply — Image source: Rising oil prices | Source: © Emeraldgreen | Megapixl.com

Oil’s bullish sentiments

The leading financial service company, Goldman Sachs stated that a strong rebound in the demand of global oil consumption could lift Brent crude prices to surpass US$90 per barrel. Additionally, Goldman also predicts that gas-to-oil switching could increase by at least 1 million bpd.

Oil’s bullish drive

Oil prices have also been bolstered by the concerns of gasoline and distillate shortage in China, India, and Europe spurring the demand for fuel oil and diesel for power production.

Gasoline and distillate consumption is on track after more than a year of depressed demand.

Bottom Line

Crude oil prices surged to record high levels on the back of strong demand and the plan of OPEC and its allies to gradually increase the output.

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