WTI crude crosses $81, Brent nears $84

Oil drilling rigs

Oil prices rose on Monday, with WTI crude crossing the $81-mark amid supply restrictions by major producers.

The international benchmark Brent crude was trading up 1.9% at $83.95 per barrel, at 11.15 am Makkah time.

WTI crude rose 2.5% to $81.36 per barrel. The US benchmark has gained about 30% since mid-August, in light of the worsening energy crisis.

Crude prices have edged higher as vaccination rates rise, leading to easing of lockdown measures and a growth in fuel economic activity.

Coal and gas prices have also been surging as economies recover, making oil more attractive as a fuel for power generation.

However, Capital Economics, in a note, said: “We think crude prices will struggle to climb much higher this quarter and still forecast them to gradually drop next year,” Reuters reported.