The surprise move by several of the world’s largest oil exporters to cut output has led most analysts to raise their Brent price predictions.
Goldman Sachs has lifted its forecast to $95 a barrel by the end of this year, and to $100 for 2024.
Oil prices jumped by more than $5 a barrel at the weekend on the unexpected decision by Opec+ oil producers to reduce output by more than one million barrels a day.
Reuters says the latest pledges bring the total volume of cuts by Opec+ to 3.66million barrels a day - equal to about 3.7% of global demand.
The oil price topped $120 after Russia invaded Ukraine, but had been on the retreat in recent months.
Brent futures were up 0.65% at $85.41 a barrel this morning.
Investor attention
Following the fresh oil-price surge, investor attention is now shifting to oil-demand trends and the impact of higher prices on the global economy.
"The buying spree from the Opec+ output cut has calmed down," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
"In the short term, demand is expected to rise for the summer driving season, but higher oil prices may intensify inflationary pressures and prolong interest-rate hikes in many countries, which could dampen demand."
- The North Sea Transition Authority (NSTA) yesterday defended its analysis of upstream emissions.
Pressure group Uplift had claimed that emissions from operations at the Rosebank field west-of-Shetland field would be enough to exceed the oil and gas sector’s assumed share of the nation’s carbon budget by the end of the decade.
However, offshore regulator NSTA told Energy Voice it has “full confidence” in data which shows the sector is on track to reaching its emissions-reduction target by the end of the decade, if not surpass it.
Estimated to hold 300million barrels of recoverable resources in its first phase, a plan to develop Rosebank is currently under consideration by UK authorities - with a decision expected this year.