Oil up amid global energy crunch

Oil prices rose again on Monday, extending their multiweek gains as major economies grappled with a global energy crunch. The energy shortage showed no signs of letting up amid a recovery in economies and supply constraints from major producers.

Brent crude jumped 1.5%, or $1.25 cents, at $83.59 per barrel by 0656 GMT, after its 4% rise in the previous week.

U.S. oil soared 1.8%, or $1.46, at $80.81 per barrel, its highest since late 2014. The benchmark futures added 4.6% last week.

Prices have climbed up as an increase in the vaccinated population prompted countries to lift coronavirus restrictions, lending aid to a revival of economic activity, with Brent advancing for five weeks and U.S. crude for seven.

Coal and gas prices have also risen as economies bounced back, making oil more attractive as a fuel for power generation, lifting the crude market higher.

In Asia, a number of Indian states are experiencing electricity blackouts due to coal shortages, while in China, miners have been ordered by the government to boost coal production as power prices soared.

The energy shortage gripping the world is increasing the possibility of a difficult northern winter as heating demand also increased.