Oil price increased as brent oil futures rose buy 0.74% TO $84.62 and the western texas intermediate (WTI) jumped by 0.68% to $81.86 per barrel.
The oil market is experiencing a supply deficit. Thus, rising gas and coal prices are resulting to the demand substitute which is oil products. As oil is set to end the week at a 2% gain, The United states of America energy information administration reported that a 6.088 million barrels was built for a week. However, the American petroleum institute reported a build of 5.213 million barrels.
On the other hand the oil stock of the organization for economic co-operation and development has declined to its least value in contrast to 2015. The purchase request for oil products is rising as covid 19 vaccine rollout spreads and as a result of the spike in natural gas prices.
With OPEC forecasting to boost supply towards the start of next year, the (IEA) international energy agency has stated that the current energy fall out will increase oil demand by 500,000 barrels per day.
The forces of demand and supply arising from supply deficit and demand pressure is creating a complex scenario in the oil market worldwide