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Brent crude traded at a nearly three-year high Monday as oil prices continued to rally in the wake of disruptions to production in the Gulf of Mexico following Hurricane Ida and signs of strengthening demand.
Goldman Sachs has boosted its oil price target to $90, citing the lingering impact of Hurricane Ida on supply while demand ramps up, particularly in COVID-averse Asia.
November Brent crude
BRNX21,
the global benchmark, was up $1.29, or 1.8%, at $79.38 a barrel on ICE Futures Europe. December Brent
BRN00,
BRNZ21,
the most actively traded contract, was up $1.35, or 1.7%, at $79.44 a barrel.
November West Texas Intermediate crude
CL00,
CLX21,
rose $1.30, or 1.8%, to $75.28 a barrel on the New York Mercantile Exchange.
Brent crude futures
BRN00,
rose 1% to $78.12 per barrel, and the West Texas Intermediate contract
CL.1,
added 1% to $74.79.
Analysts at Goldman Sachs, led by Damien Courvalin, lifted their year-end forecast on Brent crude-oil to $90 a barrel from $80, citing the aftereffects of the storm and rising demand, particularly in Asia. The analysts said Ida should prove to be the most bullish hurricane in U.S. history, canceling the ramp-up in OPEC+ output since July.
At the same time, global oil demand is back to converging to pre-COVID levels. Traffic congestion in China quickly recovered after a summer dip. The delta-driven decline in global flights was smaller than the analysts initially feared.
Natural-gas futures
NG00,
meanwhile rose nearly 5%. “An upgraded probability of a second La Niña event this winter will keep gas buyers scouring markets for supplies,” said analysts at BCA Research.
