“Oil prices rose on Friday and are approaching a fourth consecutive weekly increase. New U.S. sanctions against Russian energy have limited supply and raised spot prices and transportation rates.”, — write: epravda.com.ua
Oil prices rose on Friday and are approaching a fourth consecutive weekly increase. New U.S. sanctions against Russian energy have limited supply and raised spot prices and transportation rates. This is reported by the Reuters agency. Brent crude oil futures rose 44 cents (0.5%) to $81.73 per barrel. American WTI rose by 62 cents (0.8%) to $79.3 per barrel. For the week, Brent and WTI added 2.5% and 3.6%, respectively. “Supply constraints due to US sanctions against Russian producers and tankers, as well as expectations of a recovery in demand linked to possible interest rate cuts in the US, are supporting the oil market,” Fujitomi Securities analyst Toshitaka Tazawa noted.Advertisement: He also added that the expected increasing demand for kerosene due to cold weather in the US is an additional support factor. Last Friday, the Biden administration announced expanded sanctions against Russian oil producers and tankers, as well as additional measures against Russia’s military-industrial base and attempts to circumvent sanctions. Moscow’s main customers China and India are looking for alternative supplies, which has caused shipping rates to rise.Advertisement: Investors are also keeping a close eye on possible new supply disruptions due to Donald Trump’s inauguration next Monday. “Rising supply risks continue to support oil prices,” ING analysts wrote in a research note. They add that the new US administration is expected to take a tough stance on Iran and Venezuela, which are key oil suppliers. Improved demand expectations also supported the oil market amid hopes that the US Federal Reserve will cut interest rates following data on lower inflation in the world’s largest economy. “Inflation is likely to continue to decline, allowing the US central bank to cut rates sooner and earlier,” Federal Reserve Governor Christopher Waller said on Thursday.