Oil is heading for a weekly gain of more than 3%

Oil demand rebounded with the recovery from the “Covid-19” pandemic.

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Oil prices jumped yesterday, heading towards achieving weekly gains of more than 3%, amid increasing evidence of a tight supply during the next few months, with increased expectations of switching to petroleum products, in light of the sharp rise in natural gas and coal prices.

Brent crude futures touched their highest level since October 2018, and increased by 84 cents, or 1%, to $84.84 a barrel.

Prices for the month of the nearest maturity also rose 3%, heading towards the rise for the sixth consecutive week.

In turn, the futures contracts for "West Texas Intermediate crude" increased 74 cents, or 0.9%, to $ 82.05 a barrel, and it is about to achieve an increase of 3.4%, to rise to the eighth week in a row.

Analysts pointed to a sharp decline in oil stocks in the Organization for Economic Cooperation and Development, to their lowest level since 2015.

Demand has rebounded, with the recovery from the Covid-19 pandemic, as well as the industry shifting away from expensive gas and coal, to fuel oil and diesel.

Commodities analyst Vivek Dar, at the Commonwealth Bank, said the energy crisis, particularly in coal and gas, had benefited oil.

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