Oil rose towards $84 a barrel on Tuesday, gaining for a third session, as the lifting of travel restrictions by the U.S. and more signs of a global post-pandemic recovery lifted the demand outlook, while supply remained tight.
On Monday, travellers took off for the United States again, while the passing of U.S. President Joe Biden’s infrastructure bill and better-than-expected Chinese exports helped paint a picture of a recovering global economy.
Brent crude rose 31 cents, or 0.4%, to $83.74 a barrel by 1150 GMT, after gaining 0.8% on Monday.
“With the reopening of U.S. borders for vaccinated travellers, jet fuel demand ought to receive a healthy boost,” said Tamas Varga of oil broker PVM.
“The passage of the $1 trillion U.S. infrastructure bill in Congress is also expected to provide additional help.”
The price of Brent has risen more than 60% this year and hit $86.70, a three-year high, on Oct. 25, supported by supply restraint by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, and recovering demand.
At a meeting last week, OPEC+ decided to stick to its existing pace of easing of record output cuts and rebuff U.S. pleas to pump more — helping to keep supply tight for the near term in the view of some analysts.
JPMorgan Chase said global demand for oil in November was already almost back to pre-pandemic levels of 100 million barrels per day, following 2020’s collapse.