Some Industries Shifting from Gas to Oil Prices Rise
Oil prices rose on Friday, heading for an increase of 4.5% during the week, as a result of indications that some industries have started to switch from using high-priced gas as fuel to oil.
Brent crude futures jumped 1.1 percent to $82.88 a barrel, by 05:03 GMT.
US West Texas Intermediate crude futures rose 1.3 percent to $79.32 a barrel.
The rise comes amid doubts that the US government will withdraw its strategic oil reserves at the present time.
“Oil prices rose after the US Department of Energy said it had no plan at the moment to tap US strategic oil reserves to calm the rise in oil prices,” Vivek Dahar, an analyst at Commonwealth Bank, said in a note.
But a source at the US Department of Energy said that a post on social media was published by a reporter for “Bloomberg” agency, in which he said that the ministry is not considering withdrawing from the strategic reserve “for the time being,” adding that all “tools are always on the table” to address the scarcity of energy supplies.