(Bloomberg) — Oil was poised for a fifth weekly gain as the market tightens amid a global energy crunch that’s set to increase demand for crude.

Futures in New York held above $73 a barrel, while global benchmark closed at the highest level since 2018 on Thursday. Crude inventories have declined from Europe to the U.S., even as OPEC+ adds more supply, and it comes as surging prices are expected to boost demand for oil products in power generation over winter.

Oil has rallied recently following a period of demand uncertainty due to the delta variant of the virus, with some of the world’s largest traders and banks predicting that prices could climb even further on the energy crunch. The market will also be watching for the outcome of China’s first ever auction of crude from its strategic reserves later Friday.

The market’s tightening has seen Brent consolidate in a bullish pattern. On Thursday, the prompt timespread stood at 79c in backwardation (where near-term contracts tend to be more costly than those that are later-dated) Compare this to the 69cs per week.

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