Oil prices rose to their highest level in seven years as global supplies remain tight amid strong fuel demand in the U.S. and other parts of the world where economies are recovering from the easing of the coronavirus lockdown.
WTI crude futures were up 87 cents, or 1.0%, to $84.31 a barrel.
Brent crude futures were up 71 cents, or 0.8%, to $85.00 a barrel.
With fuel demand in the United States stable, the oil market remains relatively strong. This led to some speculators recovering from short selling.
After more than a year of weak fuel demand gasoline and refining consumption also returned, in line with the five-year average in the United States, the world’s largest fuel user.
Meanwhile, U.S. energy companies cut oil and natural gas drilling last week for the first time in seven weeks despite rising oil prices.
Oil prices have also been driven by concerns about coal and gas shortages in China, India, and Europe, which have prompted the switch to diesel and fuel energy.
However, analysts warned that there could be a correction in the coming weeks. In addition, analysts estimate that the percentage increase in WTI so far this year has reached the level of 2007 and 2009, when we also experienced steep increases.