Oil prices have increased to hit the highest in years on Monday amid continuous increase in oil demand amid recovery from the COVID-19 pandemic. This also was aided by more custom from power generators that led away from expensive gas and coal to fuel oil and diesel.

Brent crude oil futures recorded a rise of 87 cents, or 1%, to $85.73 a barrel by 0111 GMT, making it the highest price since October 2018.

US West Texas Intermediate (WTI) crude futures also registered a rise of $1.12, or 1.4%, to $83.40 a barrel, highest since October 2014.

"Easing restrictions around the world are likely to help the recovery in fuel consumption," analysts from ANZ bank said on Monday. “The jet fuel market was buoyed by news that the US will open its borders to vaccinated foreign travellers next month. Similar moves in Australia and across Asia followed."

They added that gas-to-oil switching for just power generation could bolster further the demand by as much as 450,000 barrels per day in fourth quarter. Supply could also increase from the USA, where energy firms said last week of oil and natural gas rigs for a sixth week as increasing crude prices encouraged drillers to return to the wellpad. The US oil and gas rig count, an early indicator of future output, increased from 10 to 543 in the week to October 15, the highest since April 2020, energy services company Baker Hughes Co said.

China's economy, meanwhile, grew at its slowest pace in a year in its third quarter, damaged by power shortages, stifled supply and periodic COVID-19 outbreaks. China, the world's second-largest oil consumer issued a new batch of oil import quotas for independent refiners for the year 2021. The quotas show that total annual allowances were lower than that last year.