Oil rose to $84 a barrel on Tuesday, for the third session in a row, as the lifting of travel restrictions by the US and more signs of a recovery in the aftermath of the global pandemic lifted the demand outlook, while supplies remained tight.
On Monday, passengers flew again to the United States, while the passage of US President Joe Biden’s infrastructure bill and better-than-expected Chinese exports helped paint a picture of a recovery in the global economy.
Brent crude was up 31 cents, or 0.4%, at $83.74 a barrel by 1150 GMT after gaining 0.8% on Monday.
aircraft fuel
“With the reopening of US borders to vaccinated passengers, demand for jet fuel should see a healthy boost,” said Tamas Varga of oil broker PVM.
“The passage of the $1 trillion US infrastructure bill in Congress is also expected to provide additional help.”
The price of Brent is up more than 60% this year and hit a three-year high of $86.70 on October 25, supported by a supply restraint by the Organization of the Petroleum Exporting Countries and Allies known as OPEC+ , and demand is improving.
At a meeting last week, OPEC+ decided to stick to its current pace of record production cuts and rejected US pleas to help keep supplies tight for the near term in what some analysts view.
JPMorgan Chase said in November that global demand for oil had already returned to pre-pandemic levels of about 100 million barrels per day after the fall of 2020.