Oil rallies with IEA seeing gas shortages deepening deficit

Crude's rally in recent months has been underscored by wider gains in energy prices

Oil in New York surged past $81 a barrel after the International Energy Agency became the latest to say natural gas shortages are boosting demand for crude.

WTI crude futures rose 1.5 per cent to near the highest level since 2014. Record gas prices could add about 500,000 barrels a day of oil use over the next six months, the IEA said. Banks including UBS Group AG and Citigroup this week raised their oil price forecasts because of the gas-to-oil switch.   

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman reiterated the need for Opec and its allies to take a gradual,