Oil prices rose 4% at the end of trading on Friday, January 10 (2025), continuing to reap gains for the second consecutive session, amid indications of increased global demand.
Oil markets achieved gains for the third consecutive week, with increased demand for fuel for heating purposes, due to icy conditions in parts of the United States and Europe.
Oil prices ended trading yesterday, Thursday, January 9, up 1%, in an attempt to compensate for the losses incurred during the previous session, amid fears of a shortage of supplies.
Over the three weeks ending Friday, January 10, the price of Brent crude gained about 6%, while West Texas Intermediate crude jumped 7%.
At the end of the session, the price of Brent crude futures for March 2025 delivery rose 3.7%, reaching $79.76 per barrel, and recorded weekly gains of 4.2%.
US West Texas Intermediate crude futures for February 2025 delivery also rose 3.6% to $76.57 per barrel, posting a weekly gain of 3.5%, according to figures monitored live by the Washington-based energy platform.
Data showed that US oil inventories fell last week, for the seventh consecutive time, by one million barrels, bringing the total to 414.6 million barrels.
In Russia, oil production averaged 8.971 million barrels per day in December, below the target set by Moscow as part of its participation in OPEC+ cuts.
Analysts at JP Morgan attributed oil price gains to growing concerns about supply disruptions due to tightening sanctions, amid declining oil inventories, lower temperatures in many parts of the United States and Europe, and improved sentiment regarding Chinese stimulus measures.
The US National Weather Service expects the central and eastern parts of the country to experience below-average temperatures.
Many parts of Europe have also been hit by extreme cold, and are likely to continue to experience a colder-than-usual start to the year, which JPMorgan analysts expect will boost demand. “We expect a significant year-on-year increase in global oil demand of 1.6 million barrels per day in the first quarter of 2025, driven primarily by demand for heating oil, kerosene and LPG,” JPMorgan said in a note.