Oil set for third straight weekly gain on winter fuel demand

Tokyo: Oil prices are on the rise again. They’re set for a third straight week of gains, thanks to some chilly weather in the U.S. and Europe. People are cranking up the heat, which means more fuel is needed.

Brent crude is up a bit, hitting $77.16 a barrel, while U.S. West Texas Intermediate is at $74.18. It’s been a good few weeks for oil, with Brent climbing about 5.9% and WTI jumping 6.9% since early January.

Analysts from JPMorgan say the price hikes are due to worries about supply issues. With sanctions tightening and oil stockpiles low, the cold weather is really pushing up demand. Plus, there’s some optimism about China’s economic recovery.

The weather forecast isn’t looking great either. The U.S. is expecting some pretty cold temperatures, especially in the central and eastern regions. Europe is also feeling the chill, which is likely to keep demand for heating oil high.

JPMorgan predicts a big jump in global oil demand this year, especially for heating oil and other fuels. They’re looking at an increase of about 1.6 million barrels a day in the first quarter of 2025.

Interestingly, even with the U.S. dollar getting stronger, oil prices are still climbing. Normally, a stronger dollar makes oil more expensive for buyers outside the U.S., but this time it’s not holding prices back.

On top of that, President Biden is expected to announce new sanctions on Russia soon, which could further impact oil supplies. These sanctions have already targeted Russia’s oil industry, and with the ongoing conflict in Ukraine, it’s a hot topic.