Crude oil futures climbed higher on Monday with falling inventories, the OPEC and allies’ decision to stick with their plan of increasing production gradually, and the ongoing energy crunch supporting oil prices.
The Department of Energy’s comments last week that there are no plans to tap into strategic reserves for now continued to support oil prices.
Russia’s Gazprom PJSC, Europe’s biggest supplier of the fuel, has increased its 2021 price guidance for natural gas exports and reiterated that shoring up inventories at home was its top priority.
West Texas Intermediate Crude oil futures for November settled at $80.52 a barrel, gaining $1.17 or about 1.5%.
Brent crude futures were up $1.28 or 1.55% at $83.67 a barrel a little while ago.
Power prices have surged to record highs due to widespread energy shortages in Asia, Europe and the United States. Several countries across the world have switched to oil for power generation as gas prices have been rising consistently.
Economic activity is seeing a revival in many countries thanks to the momentum in vaccination drive.
Some Indian states are reported to be experiencing electricity blackouts because of coal shortages, while in China the government has ordered miners to ramp up coal production as power prices surge.