Forex Innovation

Oil prices rose on Friday, tracking towards a 4.2% gain for the week on signs some industries have begun switching fuel from high priced gas to oil and on doubts the U.S. government would release oil from its strategic reserves for now.
U.S. West Texas Intermediate (WTI) crude futures climbed by 84 cents, or 1.1%, to $79.14 a barrel at 0122 GMT.

Oil prices lifted after the U.S Energy Department said it has no plan 'at this time' to tap into U.S. strategic oil reserves to cool the rally in oil prices.

Overall, the week's run-up has been spurred by soaring gas prices encouraging a switch to oil for power generation and by some industries, along with a decision by the Organization of Petroleum Exporting Countries and allies led by Russia, together called OPEC+, to stick to plans to add only 400,000 barrels per day of supply in November.

Analysts said the surge in gas prices and the extent of fuel switching from gas to oil will be the key factors to watch now.

The week has been a positive one overall for the black liquid, thanks to a switch to oil for power generation and by some industries, as gas prices increase. The Organization of Petroleum Exporting Countries and allies (OPEC) also decided to continue with its plans to add only 400,000 barrels per day of supply in November 2021 when it met earlier in the week.

The surge in gas prices and the extent of fuel switching from gas to oil will be the key factor for investors to watch.