By Gina Lee

Investing.com: Oil’s high was maintained after week began. U.S. crude reached a seven year high. This shows that the global supply of oil remains limited, even though fuel demand is rising.

 edged up 0.14% to $85.29 by 10:40 PM ET (2:40 AM GMT) and  edged up 0.02% to $83.78.

The onset of the northern winter has many anticipating a demand rising, even though government intervention has kept China’s power and coal markets under control so far.

According to Edward Moya (OANDA senior market analyst), “Forecasts of a colder November put energy traders in danger. A very tight market will be met with unprecedented demand this winter,” he stated.

“The oil market will continue to be tight, and that should indicate a headline or two away form $90 oil,” he said.

Goldman Sachs (NYSE 🙂 expects Brent to rise beyond its year-end prediction of $90 per barrel. This is because switching from oil to gas may increase oil demand by 1,000,000 barrels per daily (bpd).

After more than a decade of low demand, the US has seen gasoline and distillate consumption return to their five-year averages.

Stockpiles in the United States are likely to rise this week. A Reuters poll found that crude oil inventories are forecast to have increased by 1.7 million barrels in the last week. But, and distillate inventories should fall.