NEW YORK: Oil rose for the fifth straight week with the global energy crunch set to boost demand for crude as stockpiles decline from the United States to China.

       Futures in New York gained 2.8% last week.

       The global benchmark Brent settled at the highest in nearly three for the second day in a row. Global onshore crude supplies sank by almost 21 million barrels last week, led by China, according to data analytics firm Kayrros, while US inventories are near a three-year low.

       The surge in natural gas prices is expected to force some consumers to switch to oil, tightening the market further ahead of the northern hemisphere winter.

       “The market is pricing in a prolonged impact of supply disruptions, and the likely storage draws that will be needed to fulfill refinery demand,” said Louise Dickson, oil markets analyst at Rystad Energy, in a note.

       In terms of oil demand, “no new lockdowns in Europe, robust recovery in China road activity, and the US nixing its ban on foreign travellers from November 2021, all lift prospects for upside in the coming quarters.”

       Oil has steadily climbed higher this month after a period of Covid-induced demand uncertainty, with some of the world’s largest traders and banks predicting prices may climb further amid the energy crisis. Global crude consumption could rise by an additional 370,000 barrels a day. ― Bloomberg