On Monday, oil prices reached their highest level since mid-October, as cold weather stimulated purchases, as well as expectations of tightening sanctions on Iranian and Russian oil exports.
Brent crude futures rose 0.3% to $76.81 per barrel, the highest level since October 14.
US West Texas Intermediate crude futures also rose 0.3% to $74.18 per barrel, recording their highest levels since October 11.
Consecutive gains
Oil achieved gains in the previous five sessions, supported by hopes of increased demand with colder weather in the Northern Hemisphere and more financial stimulus in China to revive its faltering economy.
SEB analyst Bjarne Schildrup said that Brent crude received support from colder than usual weather in northwestern Europe and the United States, higher natural gas prices and increased refining profit margins.
Investors are also awaiting economic data for more clues about energy consumption and interest rate expectations in the United States.
The minutes of the Federal Reserve’s latest meeting are scheduled to be released on Wednesday, and the December jobs report will be released on Friday.
Saudi Aramco, the world’s largest oil exporter, today raised crude prices for February for buyers in Asia for the first time in 3 months, and raising these prices usually indicates stronger expectations for demand.
sanctions
On the supply front, Western sanctions on Iranian and Russian oil shipments are likely to be tightened.
Two informed sources said yesterday, Sunday, that the administration of US President Joe Biden intends to impose more sanctions on Russia because of its war on Ukraine, and will target its oil revenues by taking measures against tankers carrying Russian crude.
Goldman Sachs expects Iran’s oil production and exports to decline by the second quarter, as a result of expected political changes, as well as the expectation that the administration of US President-elect Donald Trump will impose more stringent sanctions.
He said that the OPEC member state’s production may decrease by 300,000 barrels per day to 3.25 million barrels per day by the second quarter.
