Crude prices were trading near multi-year highs on Friday, erasing some of the early losses in Asian trading, amid concerns about tight supplies and tight stocks that fueled bullish sentiment.
At 10:17 GMT, crude oil futures Brent they were up 46 cents, or 0.56%, to $ 85.08 a barrel, after hitting a three-year high of $ 86.10 on Thursday. The benchmark is heading for its seventh consecutive weekly advance.
The futures of West Texas Intermediate in the United States (WTI) they improved 36 cents, or 0.45%, to 82.92 dollars a barrel, close to the seven-year peak hit this week.
Prices have been driven by concerns about a coal and gas shortage in China, India and Europe, forcing some electric generators to switch from gas to fuel oil and diesel.
The sharp rise in crude may make it vulnerable to profit taking, although there may not be a substantial correction unless the global energy crisis is alleviated, “said Ravindra Rao, vice president of commodities at Kotak Securities.
“Global gas and coal prices are down, but concerns persist for a tighter market and higher demand with the winter season just around the corner,” he added.