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Lifting of travel restrictions sends crude oil to new three-year high

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Lifting of travel restrictions sends crude oil to new three-year high

Oil prices rose to a new three-year high on Friday, hitting $ 85 a barrel, amid speculation of a reduced supply in the coming months as easing of coronary travel restrictions around the world will skyrocket. the demand for “black gold”.

Brent crude futures were up 1% at $ 84.86 a barrel.

Brent prices reached the highest level since October 2018, at $ 85.10, showing an increase for the sixth consecutive week.

West Texas Intermediate (WTI) futures were 97 cents higher at $ 82.28 a barrel, up for the eighth straight week in a row.

According to CNBC, the demand for oil has increased due to the recovery from the COVID-19 pandemic and the fact that power companies are moving away from expensive gas and coal and turning to fuel oil and diesel.

The White House has announced that it will lift travel restrictions on COVID-19 for fully vaccinated foreign nationals from November 8, which will increase demand for aircraft fuel.

“It will take three events to reverse this rise in oil prices: OPEC + to increase production unexpectedly, hot weather to hit the northern hemisphere and the Biden administration to use up its strategic oil reserves,” he said. Edward Moya, Senior Market Analyst at OANDA.

The International Energy Agency announced on Thursday that the energy crisis is expected to increase oil demand by 500,000 barrels per day.

This would result in a supply gap of around 700,000 barrels per day by the end of this year, until the Organization of the Petroleum Exporting Countries and its allies, the so-called OPEC +, increase supply, as planned in January.

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Source: politis.com.cy

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