2021.02.2309:06:00UTC+00Oil Extends Rally Amid Supply Disruptions

Oil prices rose further on Tuesday amid a tight global supply outlook after reports suggested that shale oil producers in the southern United States could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output that shut down because of a deep freeze.

An improving outlook for global oil demand on the back of Covid-19 vaccine rollouts also supported prices.

Benchmark Brent crude climbed 63 cents, or 1 percent, to $64.99 a barrel, after earlier hitting a high of $66.38.

U.S. crude futures were up 43 cents, or 0.7 percent, at $62.13. Both benchmarks have jumped around 4 percent in the previous session.

Goldman Sachs Commodities Research raised its Brent crude oil price forecasts by $10 for the second and third quarters of 2021.

Consumption will get back to pre-virus levels by late July, while output from major producers is likely to remain "highly inelastic" to the rising prices, the investment bank said in a note.

Morgan Stanley expects Brent crude prices to climb to $70 per barrel in the third quarter on "signs of a much improved market" including prospects of a pick-up in demand.