Oil continues to rise, Brent hits 3-year peak

Oil prices continued to rise as the US market opened on Monday, extending gains for the seventh straight day, as hit a 3-year high, thanks to a strong global demand outlook during the second half of 2021 and growing odds for a market supply deficit unless OPEC-Plus increased output.

US crude rose 0.6% to the highest since October 2018 at $74.42, from the opening level at $73.97, and hit a low at $73.83, and Brent crude rose 0.6% to the highest since October 2018 at $76.56 a barrel, after opening at $76.08, and hit a low at $75.92.

The US crude gained 0.9% on Friday, and Brent crude rose 0.8%, in the sixth straight daily gain.

Oil prices rose 3.75% last week, the fifth straight weekly gain, thanks to growing indicators on the demand recovery in Europe, the US and China.

Thanks to progress in Covid-19 vaccination in Europe, the US and China, most major economies started to ease their lockdown restrictions, especially travel restrictions, which portends increased fuel consumption.

The International Energy Agency revealed in its monthly report on Friday that OPEC Plus needs to open the taps to keep the world oil markets adequately supplied and to meet the rising demand.

Goldman Sachs projected last week that Brent will rise to $80 per barrel this summer as vaccination campaigns spur the global economy.