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Oil prices extended gains to hit multi-year highs on Monday amid continuing expectations of supply tightening and signs of solid fuel demand in the United States and elsewhere in the world.

Benchmark Brent crude futures rose 42 cents, or half a percent, to $85.06 a barrel, while West Texas Intermediate Crude oil futures for December delivery were up 66 cents, or 0.8 percent, at $84.42 a barrel.

Oil prices were buoyed by expectations of supply tightness as the OPEC+ alliance sticks to an existing pact for a gradual increase in oil output, citing a fragile demand recovery.

Last week, a report from the U.S. Energy Information Administration (EIA) showed crude and fuel inventories tightened, with crude inventories at the Cushing storage hub falling to 31.2 million barrels, their lowest level since October 2018.

The momentum in oil prices was also underpinned by comments from Saudi Arabia urging caution in boosting supply.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman told Bloomberg Television at the weekend that producers shouldn’t take the rise in prices for granted. That conservative stance was echoed by both Nigeria and Azerbaijan.

Market participants now look ahead to the next OPEC+ meeting scheduled for Nov. 4, where the alliance is expected to review production decisions for December.


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