Oil surged to multiyear highs, spurred by an energy-supply crunch as winter approaches.
Global benchmark Brent futures earlier rose above US$86 a barrel, reaching the highest intraday level since 2018, as Russia opted to keep a lid on gas flows to Europe. West Texas Intermediate crude neared a seven-year high.
A shortage of natural gas is creating extra demand for oil products like fuel oil and diesel from the power generation sector, coinciding with key economies rebounding from the pandemic. Meanwhile, the OPEC+ alliance is still only adding incremental, monthly supplies, and some members aren’t expected to meet current output targets.