By Gina Lee

Investing.com – Oil was up Friday morning in Asia and was set to end the week with gains of more than 2%. The rising gas and coal prices have encouraged a shift to oil products, indicating that there will be fewer supply issues in the future.

By 12:26 ET (04:26 GMT), the price of $84.62 rose by 0.74% and then rose to $81.86 by 0.68%.

A from showed that there was a 6.88 million barrel build in the week ending Oct. 8. It was significantly higher than both the forecasts of Investing.com for a 702,00 barrel build and the 2.346 million-barrel increase reported last week

The e-mail released the day before showed an increase of 5.213 millions barrels.

However, Organization for Economic Co-operation and Development oil stockpiles dropped sharply to their lowest point since 2015. With the economic recovery of COVID_19 continuing, fuel demand has increased. This is due to a shift away from costly gas and coal towards diesel for power.

Vivek Dahar, a Commonwealth Bank commodities analyst, stated that “this energy crisis in particular, coal and gas has really pushed the energy complex up higher and oil have benefited as a consequence.”

On Thursday, the International Energy Agency stated that the crisis might increase oil demand by 500,000 barrels a day (bpd). The result will be a shortage of about 700,000. Bpd from the beginning of 2021. The Organization of the Petroleum Countries plus its allies (OPEC+), will likely increase the supply of oil in January 2022.

Dhar said, “You are looking at a small window that can be tightened considerably but is going to remain weather dependent.”

RBC Capital Markets analyst say that the bull market in the global oil industry is already underway. It’s being driven by both supply tightening as well as demand strength.

Michael Tran, RBC analyst, stated in a note that “We continue to hold the view that has been held throughout the year that the oil market is still in the early stages of a multiyear, structurally solid cycle.”