Oil set for third straight weekly gain on winter fuel demand
Shafaq News/ Oil prices rose in early Asian trade and were on track fora third straight week of gains with icy conditions in parts of the UnitedStates and Europe driving up fuel demand for heating.
Brent crude futures climbed 24 cents, or 0.3%, to $77.16 a barrel at0138 GMT. U.S. West Texas Intermediate crude futures gained 26 cents, or 0.4%,to $74.18.
Over the three weeks ending Jan. 10, Brent has advanced 5.9% while WTIhas jumped 6.9%.
Analysts at JPMorgan attributed the gains to growing concern over supplydisruptions due to tightening sanctions, amid low oil stockpiles, freezingtemperatures in many parts of the U.S. and Europe and improving sentimentregarding China's stimulus measures.
The U.S. weather bureau expects central and eastern parts of the countryto experience below-average temperatures. Many regions in Europe have also beenhit by extreme cold and will likely continue to experience a colder-than-usualstart to the year, which JPMorgan analysts expect to boost demand.
"We anticipate a significant year-over-year increase in global oildemand of 1.6 million barrels a day in the first quarter of 2025, primarily boostedby ... demand for heating oil, kerosene, and LPG," JPMorgan said in a noteon Friday.
Meanwhile, the premium of the front-month Brent contract over thesix-month contract reached its widest since August this week, potentiallyindicating supply tightness at a time of rising demand.
Oil prices have rallied despite the U.S. dollar strengthening for sixstraight weeks. A stronger dollar typically weighs on prices, as it makespurchases of crude expensive outside the United States.
Supplies could be further hit as U.S. President Joe Biden is expected toannounce new sanctions targeting Russia's economy this week in a bid to bolsterUkraine's war effort against Moscow before President-elect Donald Trump takesoffice on Jan. 20. A key target of sanctions so far has been Russia's oilindustry.
(Reuters)
