Oil up as industries switch from gas, little sign supply crunch easing | Reuters
Oil prices rose on Friday, and were on track for gains of nearly 5% this week, on signs some industries have begun switching fuel from high-priced gas to oil and on doubts the U.S. government would release oil from its strategic reserves for now.
"A lot of catalysts are out there to keep the oil market tight," said Edward Moya, a senior market analyst at brokerage OANDA. Moya pointed to signs of improved fuel demand as economic activity rebounds and coronavirus restrictions ease, as well as fears that a cold winter will further strain gas supplies.
Expectations are high "that nothing in the immediate future will change the significant supply/demand deficit that is in place", said Moya.
Brent crude futures jumped $1.07, or 1.3%, to $83.02 a barrel by 0643 GMT while U.S. West Texas Intermediate (WTI) crude futures rose $1.11, or 1.4%, to $79.41 a barrel.
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