Oil prices edged up to fresh multi-year highs on Tuesday, supported by a global supply shortage and strong demand in the United States, the world’s biggest consumer. Brent futures rose $0.42, or 0.5%, to $86.41 a barrel by 1614 GMT, while US West Texas Intermediate (WTI) crude rose $0.95, or 1.1%, to $84.71.
“The energy crunch is still nowhere close to subsiding, so we expect prevailing strength in oil prices in November and December as supply lags demand and as OPEC+ stays on the sidelines,” said Louise Dickson, senior oil markets analyst at Rystad Energy.
OPEC+, comprising the Organisation of the Petroleum Exporting Countries and allies like Russia, is currently raising production by 400,000 barrels per day (bpd) each month, but has pushed back against calls to boost output faster in response to the surge in prices. Goldman Sachs said Brent was likely to push above its year-end forecast of $90 a barrel.