UPDATE 8-Oil hits multi-year highs in third weekly gain on demand recovery

Reuters

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    * OPEC+ will need to boost output to meet 2022 demand -IEA
    * Oil rally has more room to run - Goldman
    * U.S. drillers add most oil rigs in a month -Baker Hughes

 (New throughout; updates prices, market activity and comments
to settlement)
    By Laila Kearney
    NEW YORK, June 11 (Reuters) - Oil prices reached fresh
multi-year highs on Friday, closing out a third straight week of
gains on an improved outlook for worldwide demand as rising
COVID-19 vaccination rates help lift pandemic curbs.
    Brent crude  LCOc1  futures settled at $72.69 a barrel,
rising 17 cents after reaching their highest since May 2019. For
the week, Brent was up 1%.
    U.S. West Texas Intermediate (WTI) crude  CLc1  futures
settled at $70.91 a barrel, up 62 cents, settling at their
highest since October 2018. WTI was up 1.9% on the week.
    "Demand is coming back faster than supply and we're going to
need more supply to meet that demand," said Phil Flynn, senior
analyst at Price Futures Group in Chicago.  
    The International Energy Agency (IEA) said in its monthly
report that the Organization of the Petroleum Exporting
Countries and allies, known as OPEC+, would need to boost output
to meet demand set to recover to pre-pandemic levels by the end
of 2022. urn:newsml:reuters.com:*:nL2N2N50GJ
    "OPEC+ needs to open the taps to keep the world oil markets
adequately supplied," the Paris-based energy watchdog said.
    It said that rising demand and countries' short-term
policies were at odds with the IEA's call to end new oil, gas
and coal funding. 
    "In 2022 there is scope for the 24-member OPEC+ group, led
by Saudi Arabia and Russia, to ramp up crude supply by 1.4
million barrels per day (bpd) above its July 2021-March 2022
target," the IEA said.
    U.S. investment bank Goldman Sachs  GS.N  said it expects
Brent crude prices to reach $80 per barrel this summer as
vaccine rollouts boost global economic activity.  urn:newsml:reuters.com:*:nL2N2NT072
    "The rollout of the vaccine in North America as well as
Europe is helping to restore demand at the same time that OPEC+
has reigned in production," helping propel oil prices, said Andy
Lipow of Lipow Oil Associates in Houston.
    Data showing road traffic returning to pre-COVID-19 levels
in North America and most of Europe was encouraging, ANZ
Research analysts said in a note.
    "Even the jet fuel market is showing signs of improvement,
with flights in Europe rising 17% over the past two weeks,
according to Eurocontrol," ANZ analysts said.
    In an indication of future supply, U.S. oil rigs rose by six
to 365 this week to their highest since April 2020, energy
services firm Baker Hughes Co  BKR.N  said in its weekly report.
 RIG/U  It was the biggest weekly increase of oil rigs in a
month.

 (Additional reporting by Dmitry Zhdanikov, Shu Zhang and Sonali
Paul; Editing by Marguerita Choy and Steve Orlofsky)
 ((Laila.kearney@thomsonreuters.com; (917) 809-0054))

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