Crude jumps on global energy crunch; U.S. oil at 7-year high

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Oil prices surged again on Monday, extending multiweek gains as an energy crisis gripping major economies shows no sign of easing amid a pick up in economic activity and restrained supplies from major producers

Brent crude was up $1.20 cents, at $83.59 a barrel after gaining nearly 4% last week. U.S. oil was up $1.46 at $80.81 a barrel, the highest since late 2014. Meanwhile U.S. crude rose 4.6% through Friday.

Prices have risen as more vaccinated populations are brought out of coronavirus lockdowns, supporting a revival of economic activity, with Brent advancing for five weeks and U.S. crude for seven.

Drillers in the United States are taking advantage of the increase in prices and added five new oil wells last week, the fifth straight weekly increase in oil and gas rigs.

The Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, last week decided to maintain a steady and gradual increase in production.

OPEC releases its monthly oil report later this week.




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