Oil gains as energy demand rises; WTI tops $80

As nations strive to recover from the coronavirus pandemic, oil prices increased on Monday, extending multiweek gains despite supply constraints from significant suppliers and rising demand for fuels.

Brent crude was trading at $83.20 a barrel at 0212 GMT, up 81 cents, or 1%, after gaining about 4% last week. Oil in the United States NSE -0.15 percent was up $1.15, or 1.5 percent, to $80.50 a barrel, the highest level since late 2014. By Friday, the price of U.S. crude had risen by 4.6 percent.

Brent has climbed for five weeks, and U.S. crude has risen for seven, as more vaccinated populations are taken out of lockdowns and drive economic activity. As economies recover, coal and gas prices have risen, making oil more appealing as a fuel for power generation and driving crude markets higher.

However, oil prices may start to sag when inventories in the United States begin to build again following recent drawdowns.

Last week, the Organization of Petroleum Exporting Countries (OPEC) and its partners, known as OPEC+, agreed to continue a steady and gradual increase in output.