Within two years, international oil prices could reach $100 per barrel

According to a Reuters Chinese network report on the 16th, boosted by expectations that demand will recover rapidly in the second half of 2021, oil prices rose nearly 2% on Tuesday, hitting the highest in more than two years.

Brent crude futures rose $1.13, or 1.6 percent, to settle at $73.99 a barrel. At one point during the session, it touched $74.07 a barrel, the highest since April 2019.

U.S. crude futures rose $1.24, or 1.8%, to settle at $72.12 a barrel. It was as high as $72.19 a barrel during the session, the highest since October 2018.

The report quoted several of the world's largest oil traders as saying that oil prices are expected to remain above $70 a barrel and demand is expected to return to pre-pandemic levels in the second half of 2022, which has given oil prices a boost.

According to the report, Russell Hardy, CEO of Victoria, expects oil prices to be between $70-$80 per barrel for the rest of 2021 as the OPEC+ alliance formed by the Organization of the Petroleum Exporting Countries (OPEC) and its allies is expected to maintain supply constraints.

Trafigura CEO Jeremy Weir said oil prices were likely to reach $100 a barrel due to a decline in inventories before global oil demand peaked.

According to the report, analysts expect U.S. crude inventories to fall by about 3.3 million barrels last week, the fourth consecutive week of decline. The American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) will release their inventory reports later on Tuesday and Wednesday, respectively.

Investors and traders are also watching the outcome of the two-day Fed meeting for signals on when to start tapering monetary stimulus, the report noted.