By Gina Lee
Investing.com – Oil was up Monday morning in Asia, hitting its highest level in years. Increasing fuel demand, and power generators’ switch from expensive gas and coal to fuel oil and diesel, all gave the black liquid a big boost.
Brent oil futures rose 1.07% to $85.77 by 10:58 PM ET (2:58 AM GMT) the highest price since October 2018. WTI futures jumped 1.42% to $82.89, its highest level since October 2014.
Both Brent and WTI futures rose by at least 3% during the previous week.
"Easing restrictions around the world are likely to help the recovery in fuel consumption. The jet fuel market was buoyed by news that the U.S. will open its borders to vaccinated foreign travelers next month. Similar moves in Australia and across Asia followed," ANZ bank analysts said in a note.
The gas-to-oil switching for power generation alone could boost demand by as much as 450,000 barrels per day in the fourth quarter, the note added.
Investors will now keep an eye on U.S. supply, with the oil and gas rig count rising 10 to 543 in the week to Oct. 15, its highest since April 2020, Baker Hughes Co said last week.
In Asia Pacific, China, the world's top oil importer, issued a fresh batch of oil import quotas for independent refiners for 2021. Total annual allowances are lower than for 2020, and it was the first time that import permits have been reduced since independent refiners entered the market in 2015.
Meanwhile, data released earlier in the day said that China’s GDP grew 0.2% quarter-on-quarter and 4.9% year-on-year in the third quarter of 2021.