Oil up on tight supply, Brent crude nears $80 a barrel | Reuters

Oil up on tight supply, Brent crude nears $80 a barrel | Reuters

Oil prices gained for a fifth straight day on Monday, with Brent at its highest since October 2018 and heading for $80, as investors fretted about tighter supplies because of rising demand in parts of the world.

Brent crude was up $1.38, or 1.8%, to $79.47 a barrel by 11:10 a.m. EDT (1510 GMT), having posted three straight weeks of gains. U.S. crude futures rose $1.35, or 1.8%, to $75.33 a barrel, its highest since July, after rising for a fifth straight week.

Goldman Sachs raised by $10 its year-end forecast for Brent crude to $90 per barrel. Global supplies have tightened due to the fast recovery of fuel demand from the outbreak of the Delta variant of the coronavirus and Hurricane Ida's hit to U.S. production. read more

"While we have long held a bullish oil view, the current global supply-demand deficit is larger than we expected, with the recovery in global demand from the Delta impact even faster than our above-consensus forecast and with global supply remaining short of our below consensus forecasts," Goldman said.