Brent trades near $85-mark; experts expect further rise
Oil prices rose nearly $2 on Monday, extending gains as an energy crisis grips major economies amid a pick-up in economic activity and restrained supplies from major producers.
Brent crude was up $1.54, or 1.87 per cent, at $83.93 a barrel by 9.36 pm IST, its highest since October 2018. US West Texas Intermediate crude rose $1.80, or 2.27 per cent, to $81.15.
“Oil prices are likely to continue climbing in the short term,” said Commerzbank analyst Carsten Fritsch.
Prices have risen as more vaccinated populations are brought out of coronavirus lockdowns, supporting a revival in economic activity, with Brent advancing for five weeks and U.S. crude for seven.
The pace of economic recovery combined with cold weather have increased the demand for energy, while pressure on governments to accelerate the transition to cleaner energy have slowed investment in oil projects to boost supplies.