Easing restrictions around world could boost fuel consumption
Oil prices continued to increase on Monday, as rising demand fueled by the switch from natural gas and coal to oil extends the ongoing global energy crisis.
International benchmark Brent traded at $85.28 a barrel at 0744 GMT for a 0.49% rise after trade in the previous session ended at $84.86 a barrel.
American benchmark West Texas Intermediate (WTI) registered at $82.44 per barrel at the same time for a 0.87% increase from $81.73 a barrel at the end of the previous trading session.
With soaring natural gas and coal prices, the use of relatively cheaper oil for electricity generation is rising, triggering concerns of demand outstripping supply and pushing prices further up.
Brent briefly hit $86.03 a barrel on Monday morning, touching its highest level since Oct. 5, 2018, while WTI saw $83.11 per barrel at the same time, reaching a new high record since 2014.
Oil prices also found support when countries worldwide announced the lifting of restrictions from COVID-19,which could boost fuel consumption.
The White House on Friday announced that fully vaccinated foreign travelers would be eligible to enter the US beginning Nov. 8. Similar moves in Australia and across Asia followed.
On the supply side, US oil drillers, taking advantage of rising prices, put more oil rigs into production for a sixth consecutive week.
The number of US oil rigs, an indicator of short-term production in the country, increased by 12 to 445 for the week ending Oct. 15, oilfield services company Baker Hughes said on Friday.