Gasoline Demand Lifts Oil Prices for Third Week

10 Jan 2025 , 12:14 PM

Early Asian trading saw an increase in oil prices, which were headed for a third consecutive week of gains as the demand for heating fuel increased due to freezing conditions in parts of the US and Europe.

This week, the front-month Brent contract’s premium over the six-month contract hit its largest level since August, which may be a sign of supply constraints during a period of growing demand.

Brent crude futures increased 24 cents, or 0.3%, to $77.16 a barrel. At $74.18, U.S. West Texas Intermediate crude futures increased 26 cents, or 0.4%.

WTI has increased 6.9% and Brent has increased 5.9% over the three weeks ended January 10.

Even though the US dollar has been rising for six weeks in a row, oil prices have rebounded. Generally speaking, a stronger dollar affects prices since it makes buying crude outside of the US more costly.

In an attempt to support Ukraine’s military effort against Moscow before President-elect Donald Trump takes office on January 20, U.S. President Joe Biden is anticipated to announce new sanctions targeting Russia’s economy this week, which could further hurt supplies. Russia’s oil industry has been a major focus of sanctions thus far.

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