Peter Nurse   

Investing.com — The oil price soared Friday as top producers increased global supply while fuel demand rises after the recovery from pandemics.

Futures rose 1.6% to $85.05 per barrel at 9:25 ET (1333 GMT) and climbed above $85 for first time since Oct 2014. Brent futures rose 1% to $85.50 per barrel. This was just short of the highest price it has seen since October 2018.

U.S. The price of gasoline RBOB Futures was up 1.6% to $2.4530 per gallon.

Over the last 12 months, the price of oil increased more than twice as the world economy recovered from the disruptions caused by Covid-19. Mobility restrictions are gradually being removed. Despite the fact that production was severely cut in the initial stages of the pandemic, the Organization of the Petroleum Exporting Countries (OPEC +) has been cautious about adding oil to the market.

Prince Abdulaziz bin Salman, Saudi Arabia’s Energy Minister, stated Monday on Bloomberg Television that OPEC+ must maintain its prudent approach in light of the danger to the demand still posed a by the pandemic. 

The rebound in global oil demand could push prices above Goldman Sachs’ year-end forecast of $90 per barrel, the U.S. investment bank said in a research note over the weekend, helped by consumption rebounding in Asia after the recent delta-variant induced Covid-19 wave.

Concerns about gas and coal shortages in China and India have also boosted oil prices. This has prompted fuel-switching from diesel to fuel oil where it is possible.

The positive mood was bolstered by the fact that the U.S. oil rigs and oil production were cut for the first week in seven weeks. This suggests that the supply of this vital market will not increase.

The U.S. reported that net long U.S. crude options and futures positions increased during the week ending Oct. 19. This suggests money managers are still confident in the market’s ability to rise.