Oil prices jumped about 2 percent on Monday as depleting stocks, discipline in the OPEC+ group of producers and the ongoing energy crunch provided solid price support ahead of winter.
Also, the news from last week that the Department of Energy is not planning to tap into strategic reserves for now is keeping the oil market tight and supporting prices.
Benchmark Brent crude futures climbed $1.59 cents, or 1.9 percent, to $83.98 a barrel while U.S. oil futures were $1.84 percent, or 2.3 percent, at $81.19.
As the energy crisis deepens, Russia’s Gazprom PJSC, Europe’s biggest supplier of the fuel, increased its 2021 price guidance for natural gas exports and reiterated that shoring up inventories at home was its top priority.
Coal and gas prices have been surging as more vaccinated populations are brought out of coronavirus lockdowns, supporting a revival of economic activity. An energy crisis is looming over India as coal supplies grow perilously low.
Some Indian states are experiencing electricity blackouts because of coal shortages, while in China the government has ordered miners to ramp up coal production as power prices surge.