Oil prices dipped Tuesday but held near multi-year highs amid signs of a global supply shortage and strong demand in the United States, the world’s biggest consumer.
Brent crude futures for January delivery dipped 25 cents, or 0.3 percent, to $84.92 a barrel, while U.S. crude futures for December delivery were down 43 cents, or half a percent, at $83.33 per barrel.
Traders await the latest data on U.S. crude stockpiles from the American Petroleum Institute for clues to demand recovery as the world’s largest economy recovers from the damage caused by the Covid-19 pandemic.
The La Ni?a pattern has evolved in the Pacific Ocean, bringing colder, deep water up from the ocean’s depths. This usually means colder-than-normal temperatures in the northern hemisphere.
According to Goldman Sachs, Brent was likely to push above its year-end forecast of $90 a barrel. The bank estimated switching to oil from gas may add 1 million barrels per day (bpd) to oil demand.
Traders also await the outcome of talks between Iran and Western powers after the United States said efforts were at “crucial phase” to revive a 2015 nuclear agreement with Iran.