Crude oil futures ended higher on Monday fuelled by rebounding global demand that has contributed to power and gas shortages in key economies like China. The pace of economic recovery from the pandemic has supercharged energy demand at a time when oil output has slowed due to cutbacks from producing nations during the pandemic, focus on dividends by oil companies and pressure on governments to transition to cleaner energy. Meanwhile, the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, have held back from boosting supply even as prices have risen. In July, the group agreed to boost output by 400,000 bpd to restore the 5.8 million bpd in supply curbs left from its 2020 deal to cut production in the wake of the coronavirus outbreak.
Benchmark Crude oil futures for November delivery rose $1.17 or about 1.50 percent to settle at $80.52 barrel on the New York Mercantile Exchange. Brent crude for December delivery surged $1.26 or 1.50 percent to settle at $83.65 a barrel on London's Intercontinental Exchange.