On Monday, crude oil prices gain for the fifth consecutive day on the back of supply constraints as demand in some parts of the world rose due to the easing of the coronavirus pandemic.
By 02.08 GMT, Brent crude jumped by 1.5% or USD1.14 to USD79.23/barrel after on Friday it rose for the third week in a row. US oil also rose by 1.5% or USD1.11 to USD75.09/barrels, the highest since July following the rise for the fifth week in a row last week.
ANZ Research commented that across all regions, supply tightness continues to draw on stockpiles. Other than that, the oil consumption was supported by the rising gas prices which elevated oil to be more competitive.
The Organization of the Petroleum Exporting Countries and their allies (OPEC+) have seen difficulty in keeping up with the demand rebound on the back of the under-investment or maintenance delays persisting from the pandemic.
In China, the gains were barely capped even when Beijing commenced the first public sale of state oil reserves. PetroChina and Hengli Petrochemical bought four cargoes totaling about 4.43 million barrels.
