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Oil Extends Rally On Supply Tightness

WEB DESK: Oil prices rose on Monday, with Brent crude futures at their highest in more than three years, as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the Omicron coronavirus variant.

Brent crude futures gained 42 cents, or 0.5%, to $86.48 a barrel by 0022 GMT. The contract touched its highest since Oct. 3, 2018 – $86.71 – earlier in the session.

U.S. West Texas Intermediate crude was up 62 cents, or 0.7%, at $84.44 a barrel, after hitting $84.78, the highest since Nov. 10, 2021, earlier in the session.

The gains followed a rally last week when Brent rose 5.4% and WTI climbed 6.3%.

Frantic oil buying, driven by supply outages and signs the Omicron variant won t be as disruptive as feared for fuel demand, has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained a while longer, traders said.