Oil prices upward as demand is still on the rise

Oil prices rose slightly on Thursday, extending the market’s upward trend. This is based on forecasts that supply will tighten further even after OPEC+ producers stick to their scheduled mild output increases.

Global supply constraints and political concerns have pushed up oil prices by approximately 15% so far this year.

The Omicron coronavirus has only briefly slowed demand in major economies, thus demand is still on the rise.

\Brent crude was up 47 cents, or 0.5 percent, to $89.87 a barrel (1637 GMT). The price of West Texas Intermediate crude in the United States increased by 60 cents, or 0.6 percent, to $88.76 per barrel.

Friday

On Friday, oil prices soared to seven-year highs, continuing a seven-week run spurred by fears of supply interruptions fueled by chilly U.S. weather and persistent political upheaval among key international suppliers.

The market’s rise increased in the last two days as buyers flocked into crude contracts, expecting world supplies to struggle to satisfy demand.

Crude prices, which have already risen by approximately 20% this year, are expected to hit $100 per barrel due to strong global demand, according to market strategists.

Money managers increased their net long U.S. crude futures and options positions by 6,616 contracts to 304,013, reflecting their bullish outlook, according to the US Commodity Futures Trading Commission.