Oil up as industries switch from gas, little sign supply crunch easing
Oil prices rose on Friday, and were on track for gains of nearly 5% this week, on signs some industries have begun switching fuel from high-priced gas to oil and on doubts the U.S. government would release oil from its strategic reserves for now.
Brent crude futures jumped $1.07, or 1.3%, to $83.02 a barrel by 0643 GMT while U.S. West Texas Intermediate (WTI) crude futures rose $1.11, or 1.4%, to $79.41 a barrel.
Earlier in the week, WTI touched a near seven-year high of $79.78, while Brent hit a three-year high of $83.47.
Overall, the week’s run-up has been spurred by soaring gas prices, which have encouraged a switch to oil for power generation, and a decision by the Organization of Petroleum Exporting Countries and allies led by Russia to stick to plans to add only 400,000 barrels per day of supply in November.
Analysts said the surge in gas prices and the extent of fuel switching from gas to oil would be the key factor to watch now.
Reference: Reuters
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