Oil set for third straight weekly gain on winter fuel demand From Reuters

(Reuters) – Oil prices rose in early Asian trade and were on track for a third straight week of gains with icy conditions in parts of the United States and Europe boosting fuel demand.

Futures were up 69 cents, or 0.9%, at $77.61 a barrel by 0752 GMT. U.S. West Texas Intermediate crude futures gained 66 cents, or 0.9%, to $74.58.

In the three weeks ending January 10, Brent advanced more than 6% while WTI jumped more than 7%.

JPMorgan analysts attributed the gains to growing concerns about supply disruptions due to tighter sanctions against Russia and Iran, amid low oil stocks, freezing temperatures in many part of the United States and Europe and to improve sentiment regarding China’s stimulus measures.

The United States Weather Bureau expects the central and eastern parts of the country to experience below-average temperatures. Many regions in Europe have also been hit by extreme cold and will likely continue to experience a colder-than-usual start to the year, which JPMorgan analysts expect to boost demand.

“We anticipate a significant year-over-year increase in global oil demand of 1.6 million barrels per day in the first quarter of 2025, primarily driven by … demand for , kerosene and LPG,” JPMorgan said in a note on Friday. .

Meanwhile, the first-month Brent contract premium over the six-month contract reached its widest since August this week, potentially indicating tight supply at a time of growing demand.

Oil prices rose despite the strengthening of the US dollar for six consecutive weeks. A stronger dollar generally weighs on prices, as it makes buying crude oil expensive outside the United States.

Supplies could be further hit as US President Joe Biden is expected to announce new sanctions targeting the Russian economy this week in a bid to bolster Ukraine’s war effort against Moscow before the president-elect Donald Trump takes office on January 20. away was the oil industry of Russia.

“Uncertainty about how far Trump will go with Iran will provide support. Asian buyers are already looking for alternative grades from the Middle East, with broader sanctions against Russia and Iran making this flow of more difficult oil,” said ING analysts in a note on Friday.