Anticipated deficit pushes oil prices higher

Oil prices settled at a three-year high above $85 a barrel on Friday, boosted by anticipated supply deficit in the next few winter months as the easing of coronavirus-related travel restrictions leads demand surge.

Brent crude futures settled up 86 cents, or 1%, at$84.86 a barrel. Front-month prices, which touched their highest level since October 2018 at $85.10, hit a weekly rise of 3%, its sixth straight weekly gain.

U.S. WTI crude futures rose 97 cents, or 1.2%, to $82.28 a barrel. Oil was up 3.5% on the week in an eighth consecutive week.

Demand has picked up with the recovery from the COVID-19 pandemic, with a further boost from power generators who have been turning away from expensive gas and coal to fuel oil and diesel.

The White House said it will lift COVID-19 travel restrictions for fully vaccinated foreign nationals effective Nov. 8, which should boost jet fuel demand.