Oil Rises On Strong Demand

Oil prices were rising on Monday as demand remained strong. Contrary to what investors believed, prices continued to rise even as China released some reserves. Reuters polled investors only to find that most believe oil prices will remain around $80 through the end of the year. Soaring oil prices are due in large part to a switch to oil for power production as rising gas prices cause issues for suppliers. Oil has reached multi-year highs several times over the past few weeks, aided by promises from OPEC nations who have increased production by about 400,000 barrels per day. While oil consumers have asked for more production, the changes have helped the oil market recover from massive losses during the COVID-19 pandemic. U.S. oil firms are adding new rigs for the 15th month in a row, and oil stocks are gaining. Additionally, China opened its reserves to increase market supply, releasing a rare official statement from the federal government. Brent crude futures rose 70 cents to $84.42 early Monday while U.S. West Texas Intermediate futures rose 40 cents to $83.97. Exxon Mobil ($XOM@US) stock rose a quarter of a percent, and Chevron ($CVX@US) stock rose almost 1 and a quarter percent.