Brent crude hits $83.99 barrel

Brent Crude at 12:50 pm on Monday hit $84.50 per barrel, according to the Nigerian National Petroleum Corporation (NNPC).

Its data indicated that the black gold gained $2.11 per barrel to rise at 2.56 per cent.

The surge followed a rise in demand for energy that resulted from rebound activities in the face of the refusal of the Organisation of Petroleum Exporting Countries (OPEC) to increase supply.

Reuters had reported that oil prices rose more than 2 per cent on Monday, extending gains as an energy crisis gripping major economies shows no sign of easing amid a pick-up in economic activity and restrained supplies from major producers.

Brent crude was up $1.70, or 2.1 per cent, at $84.09 a barrel by 1100 GMT, its highest since October 2018.

U.S. West Texas Intermediate (WTI) crude rose $2.08, or 2.6 per cent, to $81.43 for its highest since late 2014.

“Oil prices are likely to continue climbing in the short term,” said Commerzbank analyst Carsten Fritsch.

Prices have risen as more vaccinated populations are brought out of coronavirus lockdowns, supporting a revival in economic activity, with Brent advancing for five weeks and U.S. crude for seven.

Coal and gas prices have also surged, making oil more attractive as a fuel for power generation, pushing crude markets higher.

Reuters later reported that oil prices rose more than $2 on Monday, extending gains as an energy crisis grips major economies amid a pick-up in economic activity and restrained supplies from major producers.

The pace of economic recovery combined with cold weather has increased the demand for energy, while pressure on governments to accelerate the transition to cleaner energy has slowed investment in oil projects to boost supplies.

World leaders are due to meet in November at the United Nations Climate Change Conference (COP26) taking place in Glasgow to flesh out commitments on energy transition.