Brent went up above $65 a barrel again

On Tuesday, during morning trading, oil prices have gone up by more than $1/bbl amid optimism on the deployment of the COVID-19 vaccine and lower supplies as US production is recovering way slowly, Enkorr reports.

The cost of a barrel of May Brent oil on February 23 by 8:38 a.m. Kyiv time was $65.29 (+ 1.44%). A barrel of April WTI crude was traded at $62.51 (+ 1.31%).

Shale oil producers in the southern United States may need at least two weeks to resume production of more than 2 million bpd, which has been halted due to cold weather. Frozen pipes and blackouts slow down the recovery process.

Goldman Sachs Commodities Research has increased its Brent crude oil price forecast by $10 for Q2 and Q3 2021.

The Wall Street bank expects the price of Brent crude to reach $70/bbl in the second quarter (previously forecasted $60/bbl), and in the third quarter - $75/bbl ($65/bbl.).

Morgan Stanley expects Brent crude oil prices to go up to $70/bbl in the third quarter due to "signs of the significant improvement in the market situation", including prospects for increased demand.

“Global oil demand is much better now, while Pfizer vaccine is showing positive results after a dose, the UK sees the end of the pandemic in the event horizon, as hospital admissions and mortality rate are declining after peaking in early January,” said Edward Moya, senior market analyst at OANDA, New York.

Tags: oil, USA, oil production, coronavirus, price, Brent, WTI, economy, COVID‑19 vaccine

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