Oil Prices Rise to Highest Levels Amid Recovery from COVID-19 Pandemic

Oil prices rose to their highest levels in years on Monday as demand continues to recover from the COVID-19 pandemic. Brent crude futures increased by 87 cents or 1% to $85.73 per barrel by 01:11 GMT, the highest price since October 2018. U.S. West Texas Intermediate (WTI) crude futures rose by $1.12 or 1.4% to $83.40 per barrel, the highest level since October 2014. Brent and WTI contracts increased by at least 3% last week. Analysts from ANZ Bank noted in a memo on Monday that "the easing of restrictions around the world is likely to support a recovery in fuel consumption." They added, "The news that the U.S. will open its borders to vaccinated foreign travelers next month has bolstered the jet fuel market. Similar moves followed in Australia and across Asia." They also mentioned that the shift from gas to oil for power generation alone could boost demand by up to 450,000 barrels per day in the fourth quarter.