Oil prices rallied on Monday to extend last week’s gains amid expectations that easing restrictions around the world would help the recovery in fuel consumption.
Benchmark Brent crude futures rose 86 cents, or 1 percent, to $85.72 a barrel, after hitting a session high of $86.04, the highest price since October 2018.
U.S. West Texas Intermediate (WTI) crude futures were up $1.16, or 1.4 percent, at $82.89 a barrel, after having hit a session high of $83.73, the highest price since October 2014.
Both contracts rose nearly 3 percent last week after top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply and the International Energy Agency said surging natural gas prices could boost demand for oil among power generators.
China is in the middle of an energy crunch that is denting factory output and leading to power cuts in some areas. The country’s power woes look set to intensify as coal prices rose to a record high today.
Elsewhere, the energy crisis has engulfed Europe, sending power prices to record levels.
Soaring natural-gas and coal prices from Asia to Europe are pressuring power-generation companies and manufacturers to switch to using oil as the world economy reopens.
Cold temperatures in the northern hemisphere are also expected to worsen an oil supply deficit.