Oil prices rose again on Monday and extended gains
Oil prices rose again on Monday and extended their gains for several weeks without showing any slackening as the energy crisis, which has affected major economies, revived economic activity and limited supply from major producers.
Brent crude was up 1.18 cents, or 1.4%, to $83.57 a barrel as of 0603 GMT, after gaining around 4% last week. West Texas Intermediate (WTI) oil which rose 4.6% till Friday, is up $1.49, or 1.9% to $80.84 a barrel and hit its highest level since late 2014.
The revival of economic activity, the removal of more vaccinated populations from coronavirus quarantines supported Brent's five-week advance and US crude's seven-week advance, and prices soared.
Coal and gas prices are rising as economies recover, making oil more attractive as a fuel for power generation and pushing crude markets up.
The market is having momentum driven where factors implying higher expected inflation support the rise in oil prices.
While some states in India were experiencing power outages due to coal shortages, in China the government ordered miners to increase coal production due to the rise in electricity prices.
The energy crisis ravaging the world raises the possibility of a difficult northern hemisphere winter as warming demand rises.
Drillers in the United States took advantage of the rise in prices and added five new oil wells last week, that rises the oil and gas rigs for the fifth week in a row
The Organization of the Petroleum Exporting Countries (OPEC) and its allies decided last week to achieve a steady and gradual increase in production.
OPEC will release its monthly oil report this week. Considering the expectations of increase in demand as the transition from gas to oil, which demand revisions will be made is of great interest to investors.
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