Brent crude oil soars above US$80‘NOT TOPPED OUT’: An analyst said the oil rally ‘has still got some legs,’ as fundamentals are convincing, demand is recovering and backwardation is increasingBloombergBrent oil roared above US$80 a barrel on signs that demand is running ahead of supply, depleting inventories amid a global energy crunch. Photo: AFPOil has rallied this year as the rollout of vaccines to combat the COVID-19 pandemic aids energy demand, spurring a drop in US inventories. A dramatic surge in natural gas has stoked bets that crude will benefit from spillover demand as users seek alternatives. “It looks like the oil rally has still got some legs,” JTD Energy Services Pte lead strategist John Driscoll said. Crude demand could rise 500,000 barrels a day as high gas prices force a switch, Commonwealth Bank of Australia analyst Vivek Dhar said in a note.

Source: Taipei Times September 28, 2021 15:56 UTC