Oil Prices Up 2%, Settles At Three Week High
Date
12/15/2024 2:26:17 AM
(MENAFN- The Peninsula)
The Peninsula
Doha, Qatar: Oil prices climbed about 2% on Friday to settle at a three-week high, on expectations that additional sanctions on Russia and Iran could tighten supplies and that lower interest rates in Europe and the US could boost fuel demand. brent futures gained $1.08 to settle at $74.49 a barrel. US WTI crude rose $1.27 to settle at $71.29, noted Al-Attiyah Foundation in its Weekly energy market Review.
For the week, Brent was up 5% and WTI spiked 6%. This strength is being driven by expectations of tighter sanctions against Russia and Iran, more supportive Chinese economic guidance, Mideast political havoc and prospects for a US Federal Reserve rate cut next week. European Union ambassadors agreed to impose a 15th package of sanctions on Russia last week, targeting its shadow tanker fleet.
Chinese data last week showed crude imports in the world's top importer grew annually in November for the first time in seven months. They are set to stay elevated into early 2025 as refiners opt to lift more supply from top exporter Saudi Arabia, drawn by lower prices, while independent refiners rush to use their quota. The International Energy Agency forecast an oil surplus for next year, when non-OPEC+ nations are set to boost supply by about 1.5 million bpd, driven by Argentina, Brazil, Canada, Guyana and the US Investors are also betting the Fed will cut US rates next week, with further reductions next year, after data showed weekly claims for unemployment insurance unexpectedly rose.
Asian spot LNG prices fell last week amid weak demand and the availability of more supply in the spot market. The average LNG price for January delivery into north-east Asia was at $14.50 per mmBtu, down from $15.00 per mmBtu last week, industry sources estimated. Further dips are expected as the winter has been relatively mild.
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