Brent Crude Extends Gains Above $85
Brent crude futures rose to above $85.5 a barrel on Monday for the first time since October 2018, and after gaining over 3% in the previous week as demand is unable to keep up with a booming demand following the reopening of the economies. Market tightness has been intensified by shortages of natural gas and coal in Europe and Asia, which can boost demand by as much as 450,000 barrels a day in Q4. In addition, the US is set to open its borders to vaccinated foreigners on November 8th. Meanwhile, recent data showed that China's economy, the world’s top oil importer and second-biggest consumer of the fossil fuel, grew the least in a year in Q3 and less than market expectations. Looking to future output, data from Baker Hughes last week showed the number of active US rigs drilling for oil rose by 12 to 445 in the week ending October 15th, the sixth consecutive week of increases. The total active US rig count, which includes those drilling for natural gas, also climbed by 10 to 543.
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