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Oil rallies above $75 for first time in more than two years as investors assess tightening market

Global prices for crude extended their rally, pushing above $75 a barrel for the first time since April 2019, as a rapid rebound from the Covid-19 pandemic across the world underpins increasing fuel consumption.

The international benchmark Brent rose 0.36% to $75.17 per barrel as of 6:32am GMT on Tuesday. West Texas Intermediate, which tracks US crude grades, grew by a modest 0.05% to $73.66 per barrel.

Brent oil has rallied more than 40% since the beginning of the year as the fuel demand outlook has been rapidly improving amid strong economic recoveries in the US, China and Europe.




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“Demand optimism is now well established and a tightening of the market is very much in the spotlight,” Vandana Hari, the founder of Vanda Insights, told Bloomberg. “If there is a pause in this rally, it will likely come from the supply side.”

Bank of America earlier said that global crude prices might push above $100 per barrel as early as the next year when travel rebounds.

At the same time, ongoing outbreaks of Covid-19 in several countries have left fuel demand recovery uneven. Moreover, a crackdown on private refiners in China, the world’s largest oil importer, is chilling investor sentiment.

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