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Oil set for 3rd straight weekly gain on winter season fuel demand

Oil costs rose in early Asian trade and were on track for a 3rd straight week of gains with icy conditions in parts of the United States and Europe increasing fuel demand for heating.

Brent crude futures climbed 24 cents, or 0.3%, to $ 77.16 a barrel at 0138 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 WTI has leapt 6.9%.

Experts at JPMorgan attributed the gains to growing concern. over supply disturbances due to tightening up sanctions, amid low. oil stockpiles, freezing temperatures in lots of parts of the U.S. and Europe and improving belief concerning China's stimulus. measures.

The U.S. weather bureau expects central and eastern parts of. the nation to experience below-average temperatures. Lots of. areas in Europe have likewise been struck by extreme cold and will. likely continue to experience a colder-than-usual start to the. year, which JPMorgan analysts anticipate to boost demand.

We expect a considerable year-over-year increase in. global oil demand of 1.6 million barrels a day in the first. quarter of 2025, mainly improved by ... need for heating. oil, kerosene, and LPG, JPMorgan stated in a note on Friday.

On the other hand, the premium of the front-month Brent agreement. over the six-month contract reached its largest because August this. week, possibly suggesting supply tightness at a time of. rising need.

Oil prices have actually rallied despite the U.S. dollar. reinforcing for six straight weeks. A stronger dollar. generally weighs on costs, as it makes purchases of crude. pricey outside the United States.

Supplies might be further struck as U.S. President Joe Biden is. expected to announce brand-new sanctions targeting Russia's economy. today in a quote to strengthen Ukraine's war effort against. Moscow before President-elect Donald Trump takes office on Jan. 20. A crucial target of sanctions so far has actually been Russia's oil. industry.

(source: Reuters)