LONDON: Oil prices hit multiyear highs on Monday buoyed by recovering demand and high natural gas and coal prices encouraging users to switch to fuel oil and diesel for power generation.
Brent crude oil futures were up 93 cents, or 1.1 percent, to $85.79 a barrel by 1100 GMT, after hitting $86.04, their highest level since October 2018.
US West Texas Intermediate crude futures climbed $1.35, or 1.6 percent, to $83.63 a barrel, after hitting $83.73, their highest since October 2014.
Both contracts rose by at least 3 percent last week.
“Easing restrictions around the world are likely to help the recovery in fuel consumption,” analysts at ANZ bank said in a note, adding that gas-to-oil switching for power generation alone could boost demand by as much as 450,000 barrels per day in the fourth quarter.
Cold temperatures in the northern hemisphere are also expected to worsen an oil supply deficit, said Edward Moya, senior analyst at OANDA.
