Brent crude oil futures were more above 59 cents, about 0.7%, to $85.45 by the barrel at 0900 GMT. This happened after it reached $86.04, their highest level after October 2018.
U.S. West Texas Intermediate (WTI) crude futures rose 90 cents, or 1.1%, to $83.18 a barrel. This came after scoring $83.73, their highest after October 2014.
Both contracts increased by at least 3% last week.
Analysts at ANZ bank said in a note that easing restrictions around the world should support the recovery in fuel consumption. Gas-to-oil switching for power generation alone could increase demand by as much as 450,000 barrels by day in the fourth quarter.
Oil Shortages Worsened
According to Edward Moya, senior analyst at OANDA, freezing temperatures in the northern hemisphere should also worsen an oil supply shortage.
He stated that the oil market deficit appears poised to worsen as the energy crisis will increase as the weather in the north has already begun to get cooler.
Coal, electricity, and natural gas deficiencies point to further demand for crude. However it seems that won’t be replaced by significantly extra barrels from OPEC+ or the U.S., he answered.
On Monday, Prime Minister Fumio Kishida stated that Japan would urge oil producers to increase production and cushion the influence of rising energy costs on industry.
Chinese data revealed third-quarter economic growth dropped to its lowest level in a year. This resulted from a drop it received from power shortages, supply bottlenecks, and sporadic coronavirus outbreaks.
In September, China’s daily crude processing rate also dropped to its weakest level after May 2020. A feedstock shortage and environmental inspections deadened operations at refineries, while independent refiners faced squeezing crude import quotas.