Oil prices reversed early losses to extend gains on October 12 into a fourth day amid a rebound in global demand that is contributing to energy shortages in major economies, Report informs referring to Investing.com.

The price of a barrel of December futures for Brent oil amounted to $83.86 (+ 0.25 percent). A barrel of November futures for WTI crude was traded at $80.70 (+ 0.22 percent). During the previous trades, both benchmark grades gained 1.5 percent.

“There is still plenty of momentum behind the oil rally, and the fundamentals remain extremely favorable,” said Craig Erlam, senior market analyst at OANDA. “Will it be a surprise to see oil back in the triple digits later this year? Probably not.”

Power prices have risen to records in recent weeks, driven by energy shortages in Asia, Europe, and the US. High gas and coal prices are raising the prospect of more switching to oil for power generation. Switching to oil from natural gas for power production may boost global demand for crude by between 250,000 to 750,000 barrels per day, analysts have estimated.

In China, where major industrial regions are grappling with power shortages, the government on Tuesday announced it would fully liberalize the country’s thermal power market.

Thermal coal futures were also on the rise again, with prices in China gaining more than 10 percent.

Higher energy prices are also adding to inflationary pressures in recovering economies. Japan’s wholesale inflation was at a 13-year high in September, data showed on October 12.

Qatar, the world’s biggest producer of liquefied natural gas (LNG), on October 11 told customers it was unable to help take the spark out of energy prices and supply more fuel to the market.