The rise in oil prices driven by the scarcity of supply in the coming months

Baghdad Oil prices jumped, today, Friday, heading towards achieving weekly gains of more than 2%, amid increasing evidence of a tight supply during the next few months, with increased expectations of switching to oil products in light of the sharp rise in natural gas and coal prices.

Brent crude futures rose 28 cents, or 0.3 percent, to $84.28 a barrel at 0156 GMT, after rising 82 cents in the previous session, heading towards a rise of 2.3 percent during the week.

US West Texas crude contracts also rose 30 cents, 0.4%, to reach $81.61 a barrel, after an increase of 87 cents yesterday, Thursday, to be on the way to achieving a weekly gain of 3%.

Analysts pointed to a sharp decline in oil stocks in the Organization for Economic Cooperation and Development, to their lowest level since 2015, according to Reuters.

Demand has rebounded with the recovery from the Covid-19 pandemic, as well as the industry shifting from gas and coal, whose prices have soared, to fuel oil and diesel for energy.

Source: National Iraqi News Agency