Oil prices rose at the beginning of the week's trading, as US West Texas Intermediate crude exceeded $75 a barrel, today, Monday, after a series of gains for the fifth consecutive week.
According to Arabiya Net, Brent crude recorded its highest level since October 2018 at $79, and US stocks approached their lowest level in three years.
It appears that rising natural gas prices will drive oil demand as users replace fuel.
Oil has risen more than 80% over the past year as global demand has recovered from the disruption caused by the pandemic.
On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia have slowly eased production curbs. In addition, extreme weather in the United States has hampered local production.
On the threshold of the fourth quarter and the onset of winter in the northern hemisphere, a group of market watchers recorded additional price gains.
Goldman Sachs said the market deficit was larger than expected, and raised its year-end forecast for Brent crude by $10 to $90 a barrel, while Citigroup indicated it was still frankly optimistic about oil. Crude as well as gas, according to commodity forecasts.
On Monday, US natural gas futures rose for a third day, as inventory levels remained low ahead of the heating season.
The OPEC+ alliance is set to meet on October 4 to review production policy after sticking to a 400,000-per-day supply increase in recent months. Before that, OPEC is due to release the group's annual World Oil Outlook on Tuesday.
