Why ASX 200 oil shares are eyeing US$80 per barrel Brent crude prices

It’s hard to believe that this time last year, on 29 April 2020, Brent crude oil was selling for only US$22.54 per barrel. Or that Australian drivers were able to fill their cars with petrol for less than $1 per litre.

But then those were the early days of the COVID-19 pandemic. With most air, sea and even ground transportation idled due to lockdowns and social distancing, the world’s oil supplies suddenly very much exceeded the immediate demand.

Since then that demand has gradually increased as the world moves to reopen. This comes even as supplies have diminished, largely driven by output cuts from OPEC+ and reductions in US…