Oil climbs a sixth day on supply concerns, Brent rises over $80
Oil markets climbed for a sixth day on Tuesday, reversing earlier losses, on fears over tight supply while surging prices of liquefied natural gas (LNG) and coal also lent support.
Brent crude futures gained 55 cents, or 0.7%, to $80.08 a barrel at 0510 GMT, after reaching its highest since October 2018 at $80.35 earlier in the session. It surged 1.8% on Monday.
U.S. West Texas Intermediate (WTI) crude futures rose 57 cents, or 0.8%, to $76.02 a barrel, hitting its highest since July 6. It jumped 2% the previous day.
Hurricanes Ida and Nicholas, which swept through the U.S. Gulf of Mexico in August and September, damaged platforms, pipelines and processing hubs, shutting most offshore production for weeks.
Also weighing on supply, top African oil exporters Nigeria and Angola will struggle to boost output to their quotas set by the Organization of the Petroleum Exporting Countries (OPEC) until at least next year as underinvestment and nagging maintenance problems continue to hobble output, sources at their respective oil firms warn.
Analysts also say rising prices of spot liquefied natural gas (LNG) and coal may support higher oil prices.
China is in the grip of a power crunch as a shortage of coal supplies, tougher emissions standards and strong demand from manufacturers and industry have pushed coal prices to record highs and triggered widespread curbs on usage.
Reference: Reuters
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