Brent crude is widening, hitting a seven-year high as geopolitical tensions in the Middle East and concerns about Omicron’s impact on demand eased.
Houthi fighters in the mosque claimed to have launched a drone strike in the United Arab Emirates – OPEC’s third largest producer – which caused an explosion and fire on the outskirts of the capital Abu Dhabi.
West Texas also rose above $ 85 a barrel for the first time since October.
What strengthens the upward sentiment is the further dynamism in the Asian market and the shrinking of oil reserves worldwide.
Goldman Sachs upgraded estimates for Brent in 2022 and 2023, predicting that oil will reach $ 100 a barrel in the third quarter.
Crude has started the year very high with the market facing strong demand and production disruptions from countries like Libya.
Various parts of the oil industry are showing strength, from diesel to jet fuel, which is being launched in Europe as air travel seems to be “bearing” the impact of Omicron.
“The market climate remains constructive, and the attack in the Emirates has only given a slight boost to prices,” said an ING Groep analyst.
“Supply disruptions combined with steady demand mean that the oil market is tighter than expected.”
Brent is up 1.5% at $ 87.75 a barrel, the highest level since August 2014.
West Texas Intermediate for February delivery rose 1.9% to $ 85.43 a barrel.