Oil prices jumped to a three-year high above $85 a barrel on Friday, boosted by forecasts of a supply deficit in the next few months as the easing of coronavirus-related travel restrictions spurs demand.
Brent crude futures were up $0.7, or 0.9%, at $84.70 a barrel at 1:28 pm EDT (1728 GMT). Front-month prices, which touched their highest level since October 2018 at $85.10, were headed for a weekly rise of 3%, which would be their sixth straight weekly gain.
US West Texas Intermediate (WTI) crude futures rose $0.8, or 1.0%, to $82.11 a barrel. The contract is heading for a 3.5% gain on the week, putting it on track for an eighth consecutive weekly rise.
Demand has picked up with the recovery from the Covid-19 pandemic, with a further boost from power generators who have been turning away from expensive gas and coal to fuel oil and diesel.
The White House said it will lift Covid-19 travel restrictions for fully vaccinated foreign nationals effective November 8, which should boost jet fuel demand.
Published in The Express Tribune, October 16th, 2021.
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