Oil prices surge, adding to global energy crunch

Oil prices surged again Monday (October 11), adding to a global energy crunch.

U.S. benchmark crude jumped as much as 2.5% in early European trade, going above $81 a barrel.

That's on top of almost 5% gains last week.

Prices have risen as economies emerge from lockdown, and demand rises.

U.S. crude is now up for seven straight weeks.

The same factors have driven coal and gas prices higher, making oil more attractive for power generation - adding another push to prices.

It all adds up to a mounting energy crisis.

In China the government has ordered miners to ramp up coal production amid energy shortages.

In India some states are experiencing blackouts because of a lack of coal.

And countries across the northern hemisphere are wondering if they'll have enough energy as winter looms and heating demand rises.

Oil production is now rising in response.

U.S. drillers last week added five new wells, marking the fifth straight weekly increase in operating oil and gas rigs.

The OPEC group of producer nations is also maintaining a steady increase in output.

Even so, data shows U.S. investors are ramping up their bets on higher oil prices to come.

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