On September 27, the hydrocarbon market showed an impressive jump. Brent benchmark added more than 1% to settle above $79 per barrel. The price exceeded the mentioned level for the first time since 2018.
Early that week, global oil prices advanced by more than 1%. Notably, Brent futures for November delivery jumped above $79 per barrel amid mounting demand and rather low supply.
Thus, on September 27, December Brent futures rose by 1.14% to trade at $78.11 per barrel. At the same time, November futures increased by 1.2% to $79.03 per barrel. As a result, the price exceeded the reading of $79 per barrel for the first time since October 2018.
Against this background, WTI futures for November delivery appreciated by 1.23% to $74.89 per barrel. Earlier, the price grew above $75 per barrel, touching the level last seen in July 2021.
Analysts suppose that the oil market is supported by concerns about supply in the energy market. At the same time, demand for oil continues rising, thus pushing up prices. However, the situation is aggravated by a drop in global oil reserves. For example, in the US, oil reserves slumped to a 3-year low, creating tension in the market. Notably, OPEC+ is increasing oil production very slowly. This, in turn, has a negative impact on the global oil supply.
