Kuwaiti newspaper newspaper | Oil prices rise as demand recovers from “Covid”


Oil prices rose to their highest levels in years yesterday morning, supported by the recovery in demand and the rise in the prices of natural gas and coal, which encouraged users to switch to fuel oil and diesel to generate electricity.

Brent crude futures rose 59 cents, or 0.7 percent, to $85.45 a barrel, after rising earlier to $86.04, the highest price since October 2018.

US West Texas Intermediate crude futures rose 90 cents, or 1.1 percent, to $83.18 a barrel, after touching $83.73 a barrel, the highest level since October 2014.

Brent and West Texas contracts rose by at least three percent last week.

“Lossing restrictions around the world is likely to help fuel consumption recovery,” analysts from ANZ Bank said in a note yesterday, adding that the switch from gas to oil for power generation alone could boost demand by up to 450,000 barrels. daily in the fourth quarter.

They continued, “Since the shortage of coal, electricity and natural gas leads to additional demand for crude, it seems that this will not be accompanied by a significant increase in barrels from OPEC + or the United States.”

Japanese Prime Minister Fumio Kishida said his country would urge oil producers to increase production and take the necessary steps to mitigate the effects on industries hit by the recent rise in energy costs.


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