Brent oil hit $75 a barrel for the first time in more than two years amid signs of a rapidly tightening market.
Brent oil futures went up 0.28 per cent to $75.11 a barrel on Tuesday morning, while the U.S. oil (WTI) futures is up 0.10 per cent to $73.19, Bloomberg reported.
Since May 21, Brent oil has been on a continual rise from $66.94 per barrel, dropping only marginally on two days before hitting the $75 dent.
This development comes a month after Brent crude closed $70 per barrel on the back of an improved demand outlook.
Analysts at Goldman Sachs had February projected that oil prices will rebound to $75 by the third quarter of 2021.
Bloomberg quoted Saad Rahim, Trafigura’s global chief economist, as saying that “The market is hungry for oil.”