Oil rises as global energy crunch takes hold | Reuters

Oil rises as global energy crunch takes hold | Reuters

Oil prices rose on Friday to trade 4% up on the week, buoyed by a global energy crunch that has helped gas prices to record highs and prompted China to demand increased coal production.

Energy markets have tightened in the face of improved fuel demand as economic activity rebounds and coronavirus restrictions ease, with further pressure from fears that a cold winter could add to the strain on gas supplies.

China ordered miners in Inner Mongolia to ramp up coal production on Friday to help alleviate the country's energy crunch. read more

"As other energy prices like natural gas and coal keep pushing higher, upside risks to the oil market have started to build," said Bank of America's Christopher Kuplent.

Brent crude futures rose 58 cents, or 0.7%, to $82.53 a barrel by 1130 GMT while U.S. West Texas Intermediate (WTI) crude futures rose $0.60, or 0.8%, to $78.90.

Earlier in the week, WTI touched its highest in nearly seven years at $79.78 while Brent hit a three-year high of $83.47.