Oil prices climb more than 3%, set for multi-week gains
Oil prices climbed on Friday, heading for gains of more than 3% for the week, on increasing signs of robust demand and tighter supplies over the next few months as rocketing gas and coal prices stoke a switch to oil products.
Brent crude futures touched their highest since October 2018, rising 84 cents, or 1%, to $84.84 a barrel by 0652 GMT. Front-month prices are set to climb for the sixth straight week, up 3% this week.
U.S. West Texas Intermediate (WTI) crude futures rose 74 cents, or 0.9%, to $82.05 a barrel, adding to an 87 cent jump on Thursday. The contract is heading for a 3.4% gain on the week, up for the eighth consecutive week.
Analysts pointed to a sharp drop in OECD oil stockpiles to their lowest level since 2015. Demand has picked up with the recovery from the COVID-19 pandemic, with a further boost coming from industry turning away from expensive gas and coal to fuel oil and diesel for power.
The International Energy Agency on Thursday said the energy crunch is expected to boost oil demand by 500,000 barrels per day (bpd).
That would result in a supply gap of around 700,000 bpd through the end of this year, until the Organization of the Petroleum Countries and allies, together called OPEC+, add more supply, as planned in January.
China issues more crude oil import quotas for 2021 at 14.89 mln T - document, sources
China coal prices hit record highs, early winter chill adds to energy woes
China's energy crisis deepened on Friday as cold weather swept into much of the country and power plants scrambled to stock up on coal, sending prices of the fuel to record highs.
Reference: Reuters