Oil prices rose on Monday, extending multiweek gains amid supply restraint from major producers and growing demand for fuels as economies try to recover from the coronavirus pandemic.

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Brent crude was up 81 cents, or 1 percent, at $83.20 a barrel by 0212 GMT, after gaining almost 4 percent last week. US oil was up $1.15, or 1.5 percent, at $80.50 a barrel, the highest since late 2014. US crude rose 4.6 percent through Friday.

Jonathan Barratt, CIO of Probis Securities in an interview to Manisha Gupta said that he expects Brent crude to test 2018 highs of USD 87 per barrel as economies start getting out of COVID.

“When I look at crude oil, I think there are more legs in it. We had some issues with supply due to the hurricanes in the Gulf but I get a sense that as people start to come out of COVID, the demand is something we have been unprepared for. So I get a sense that oil prices can continue to highs. On Brent, I think we can get close to 2018 highs at USD 87 per barrel level again which is not that comfortable for lot of economies. So there are still more legs in it as we get out of COVID and as economies start to ramp up.”

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He expects OPEC to put in more supply if oil prices continue to move higher.

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“OPEC has said what they are going to do and that is fine. At these levels of oil OPEC are very comfortable. So I think OPEC will be quite happy, they will keep to their promises of what they are doing but I wouldn’t be surprised that if prices move on they would have bit of a flip and put more supply. We have capacity issues and other issues but I think if it is time to produce at those levels, you will find that OPEC will come to the market when needed.”

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(Edited by : Aditi Gautam)