Oil prices rose for a fifth straight day yesterday with Brent heading for $80 amid supply concerns as parts of the world see 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. United States oil added $1.11 or 1.5 per cent to $75.09, the 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 are also helping drive oil higher as the liquid becomes relatively cheaper for power generation, ANZ analysts added.
Caught short by the demand rebound, members of the Organisation of Petroleum Exporting Countries and their allies, 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 low reached in July, as refiners in the second-biggest importer of crude stocked up in anticipation of higher demand.