A booming rebound in oil markets has pushed crude oil prices to their highest levels since almost the start of the coronavirus pandemic, driven by slowing production and a recovery in demand.
Brent-crude futures, the benchmark in energy markets, have risen more than 50 percent since late October and are approaching $ 60 a barrel for the first time since Covid-19 began eroding oil demand in early 2020. Futures for West Texas Intermediate — or WTI, the top U.S. crude oil grade — last week topped $ 55 a barrel for the first time in more than a year.
The speed of the recovery has surprised some investors and analysts as the coronavirus continues to reduce demand. It has owned shares of companies such as Exxon Mobil Corp. and ConocoPhillips after a turbulent 2020 for oil and gas producers, making energy stocks the best S&P 500 results this year.
“The market definitely has some momentum,” said John Kilduff, a partner at Again Capital LLC, a hedge fund that invests in energy derivatives. “WTI will also go to $ 60.”
Oil is rising in a mixed economic context, with data released Friday suggesting the labor market is facing a long road to recovery. But the stock market continues to rise, in part because investors expect a new dose of fiscal stimulus and vaccines for goose growth.