Brent ended up 1.06% at $88.44 and WTI ended up 1.79% at $86.96.
The barrel of Brent from the North Sea came close to 90 dollars on Wednesday, buoyed by its momentum as well as by the increase in the demand forecast of the International Energy Agency (IEA).
The barrel of Brent from the North Sea for delivery in March gained 1.06% to end at 88.44 dollars, in London. Earlier, it hit $89.17, for the first time since early October 2014.
In New York, the barrel of West Texas Intermediate (WTI) with maturity in February gained 1.79% to close at 86.96 dollars. Since the end of 2021, WTI has gained 15%.
The IEA “confirmed that the market looked tighter than expected, driven by stronger demand, despite (the coronavirus variant) Omicron and the inability of OPEC+ (OPEC countries and their allies) to achieve its production targets,” commented Oanda analyst Craig Erlam in a note.
The Agency has raised its estimate of global demand by 200,000 barrels per day in 2022, bringing it to 99.7 million barrels per day.
“If demand continues to grow strongly or supply disappoints, low inventories and dwindling excess capacity mean the oil market might experience another volatile year in 2022,” the IEA said.
“In recent days, events in Kazakhstan, followed by developments in Ukraine and Turkey have heightened market concerns regarding supply,” said Andy Lipow of Lipow Oil Associates.
Tuesday evening, an explosion in the south-east of Turkey had caused the closure of the pipeline between Kirkuk (Iraq) and Ceyhan (Turkey), before its recovery on Wednesday morning.
Despite the brevity of the cut, which also appears to have been caused not by human intervention but by the fall of an electric pole, according to the governorate of Kahramanmaras, the news was enough to tense the market a little more. .
Traders are now looking to the publication on Wednesday of US crude oil inventory figures, expected to fall by 800,000 barrels, which would be the eighth consecutive drop.
“With Brent close to $90, it becomes a target for the market,” warns Andy Lipow.
On Wednesday, BNP Paribas analysts said in a note that the probability of a barrel at 100 dollars “increased”.