Oil prices rose for a fifth straight day on Monday with Brent heading for $80 amid supply concerns, occasioned by rising gas prices as parts of the world sees demand pick up with the easing of pandemic conditions.
Brent crude was up $1.14 or 1.5 per cent at $79.23 a barrel having risen a third consecutive week through Friday. U.S. Oil added $1.11 or 1.5 per cent to $75.09, its highest since July, after rising for a fifth straight week last week.
“Supply tightness continues to draw on inventories across all regions,” ANZ Research said in a note.
Rising gas prices is also helping drive oil prices higher as the liquid becomes relatively cheaper for power generation, ANZ analysts said in the note.
Cut short by the demand rebound, members of the Organization of Petroleum Exporting Countries and their allies, otherwise known as OPEC+, have had difficulty raising output as under-investment or maintenance delays persist from the pandemic.
China’s first public sale of state oil reserves has barely acted to cap gains as PetroChina and Hengli Petrochemical bought four cargoes totalling about 4.43 million barrels.
India’s oil imports hit a three-month peak in August, rebounding from nearly one-year lows reached in July, as refiners in the second-biggest importer of crude stocked up in anticipation of higher demand.