Global oil benchmarks hit 3-year high on supply woes

Global crude oil futures extended their gains on Tuesday due to a global energy crisis and a promising demand outlook amid the expected easing in Covid restrictions across parts of the world. The uncertainty on when Iranian crude supplies could return to the global market and a slow recovery in the US supplies in the aftermath of Hurricane Ida contributed to the ongoing gains, according to some industry sources.

On Monday, Brent crude settled up $1.44, or 1.84% to $79.53/bbl, while West Texas Intermediate (WTI) increased by $1.47, or 2% to $75.45/bbl, indicating the highest levels since late July.

Furthermore, at the time of writing, Brent oil was trading 0.82% higher from Monday’s settlement at $80.18/bbl while West Texas Intermediate (WTI) crude was trading 0.97% higher at $76.18/bbl. Both oil benchmarks indicated the highest levels since October 2018, according to ChemOrbis Price Wizard.