Oil surpasses $ 85 a barrel, Brent braces for seventh weekly gain – .

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Oil surpasses $ 85 a barrel, Brent braces for seventh weekly gain – .


Crude oil storage tanks are seen in an aerial photograph at the Cushing Oil Hub in Cushing, Oklahoma, USA, April 21, 2020. REUTERS / Drone Base

  • Brent still trades near its three-year high
  • WTI set for ninth weekly gain
  • Low US inventories, high gasoline demand

LONDON, Oct. 22 (Reuters) – Oil prices stayed close to multi-year highs on Friday, erasing some earlier losses during trading hours in Asia as concerns over tight supply and stocks fueled bullish sentiment.

Brent crude futures rose 92 cents, or 1%, to $ 85.53 a barrel at 1.35 p.m. GMT, after Thursday’s three-year high of $ 86.10. The benchmark index is set for its seventh weekly gain.

US West Texas Intermediate (WTI) crude futures rose $ 1.05, or 1.3%, to $ 83.55 a barrel, not far from a seven-year high reached this week. The note is heading towards its ninth weekly increase.

Prices have been inflated by concerns over coal and gas shortages in China, India and Europe, prompting some power producers to switch from gas to oil and diesel.

Winter conditions across much of the United States are expected to be warmer than average, according to a National Oceanic and Atmospheric Administration forecast.

“The upside risk for oil prices is real in the very short term, as there is little incentive to go short in a context of the global energy crisis where OPEC + is quietly sitting on the sidelines. ‘supply,’ said Louise Dickson, senior oil markets analyst at Rystad.

US crude found support this week as investors viewed low inventories of crude at the US storage facility in Cushing, Oklahoma.

Data from the US Energy Information Administration on Wednesday showed crude inventories at Cushing fell to 31.2 million barrels, their lowest level since October 2018. read more

“Gasoline demand in America appears to be having an Indian summer,” PVM analysts said in a note, pointing to the highest implied demand for this time of year since 2007 despite high prices at the pump.

Additional reporting by Sonali Paul in Melbourne and Koustav Samanta in Singapore; Editing by Edmund Blair and Louise Heavens

Our Standards: The Thomson Reuters Trust Principles.

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