Oil prices rose to a three-year high above $85 a barrel on Friday, bolstered by expectations of a supply shortage in the coming months as coronavirus-related travel restrictions are lifted, boosting demand. At 1:28 p.m. EDT, Brent oil futures were up 70 cents, or 0.9 percent, at $84.70 a barrel (1728 GMT). Front-month prices, which reached $85.10, their highest level since October 2018, are on track for a weekly gain of 3%, which would be their sixth in a row.
With the recovery from the COVID-19 epidemic, demand has increased, with a boost from power generators who have switched from expensive gas and coal to fuel oil and diesel. The White House said on Nov. 8 that COVID-19 travel restrictions for fully vaccinated foreign nationals will be lifted, which might increase demand for jet fuel. Meanwhile, a substantial decline in oil stockpiles in the United States and the Organization for Economic Cooperation and Development's member countries is projected to keep global supplies tight.
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