Oil prices climb more than 3%, set for multi-week gains | Reuters

Oil prices climb more than 3%, set for multi-week gains | Reuters

Oil prices climbed on Friday, heading for gains of more than 3% for the week, on increasing signs of robust demand and tighter supplies over the next few months as rocketing gas and coal prices stoke a switch to oil products.

Brent crude futures touched their highest since October 2018, rising 84 cents, or 1%, to $84.84 a barrel by 0652 GMT. Front-month prices are set to climb for the sixth straight week, up 3% this week.

U.S. West Texas Intermediate (WTI) crude futures rose 74 cents, or 0.9%, to $82.05 a barrel, adding to an 87 cent jump on Thursday. The contract is heading for a 3.4% gain on the week, up for the eighth consecutive week.

Analysts pointed to a sharp drop in OECD oil stockpiles to their lowest level since 2015. Demand has picked up with the recovery from the COVID-19 pandemic, with a further boost coming from industry turning away from expensive gas and coal to fuel oil and diesel for power.