October 27, 2021: Oil prices climbed on Wednesday, bolstered by supply shortage on the market.

The West Texas Intermediate for December delivery added 89 cents to settle at 84.65 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for December delivery increased 41 cents to close at 86.40 dollars a barrel on the London ICE Futures Exchange.

Both crude benchmarks hit their multi-year highs as the market remains tight.

“Demand for energy has rebounded sharply as economies reopen after the COVID-19 pandemic,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note.

“At the same time, supply has been constrained by various issues including weather-related outages, integration challenges with renewables, and supply chain bottlenecks,” he added.

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