By Gina Lee

Investing.com – Oil was up Monday morning in Asia, starting the week off strong over signs that the crude market is tightening thanks to the global energy crunch.

rose 1.20% to $78.16 by 10:36 PM ET (2:36 AM GMT) and jumped 1.27% to $74.92. Brent and WTI futures both reached new highs.

Both the and the reported bigger-than-expected draws in the U.S. crude oil supply during the previous week, with stockpiles near a three-year low. A simultaneous rally in is also likely to drive demand for the black liquid as users switch fuels.

As global demand recovers from COVID-19 disruptions, oil has risen more than 80% by 2021. The tightened market supply is also being supported by the Organization of Petroleum Exporting Countries (OPEC+), which has slowly relaxed its output restrictions.

The U.S.l. was also affected in part by hurricanes Ida/Nicholas. When they struck, in September and August respectively, the Gulf of Mexico area was affected.

Investors are anticipating further price gains as they approach the end of the fourth quarter, and when the winter arrives in the north hemisphere. Goldman Sachs Group Inc. (NYSE:) said the market’s deficit was larger than expected and raised its year-end Brent forecast by $10 to $90 a barrel.

The positive outlook for investors is also evident in the wider spreads at key markets time. Brent futures’ prompt spread was 85 cents a barrel in backwardation, up from 61 cents a week ago.