Oil prices extend gains to multi-year highs on tight supply | Reuters

Oil prices extend gains to multi-year highs on tight supply | Reuters

Oil prices climbed on Monday, extending pre-weekend gains to hit multi-year highs as global supply remained tight amid solid fuel demand in the United States and elsewhere in the world as economies pick up from coronavirus pandemic-induced slumps.

U.S. West Texas Intermediate (WTI) crude futures rose 62 cents, or 0.7%, to $84.38 a barrel at 0646 GMT, after gaining 1.5% on Friday. They touched their highest since October 2014 - $84.76 - earlier in the session.

Brent crude futures increased 56 cents, or 0.7%, to $86.09 a barrel, following on from last Friday's 1.1% gain. The contract earlier hit its highest since October 2018 of $86.43.

"With firm fuel demand in the United States amid tight supply, oil market's tone stayed fairly strong, which prompted some speculators to unwind short positions," said Tetsu Emori, CEO of Emori Fund Management Inc.