Brent crude rose to its highest level in seven years as physical markets heat up in the world’s largest consuming region and Goldman Sachs Group Inc. said prices were approaching $100 a barrel.

London futures jumped to $88.13 a barrel, a level last seen in October 2014. Prices are up 12% this year as worries about omicron’s impact on demand subsided, prompting traders to pay higher and higher surcharges for cargo in Asia. The market was also supported by a series of supply disruptions, and a drone attack on oil facilities in the UAE on Monday heightened geopolitical risks.

Goldman Sachs raised its forecasts for Brent through 2022 and 2023 and projected a $100 oil price in the third quarter. Robust fundamentals have reversed last year’s price slump, keeping the market in surprisingly large deficits, with the omicron option having far less impact on demand than the delta so far, the report said.