Oil prices rise 2 percent on sanctions expectations, economic stimulus hopes


(MENAFN) Oil prices rose by about 2 percent on Friday, reaching a three-week high, driven by expectations that additional sanctions on Russia and Iran could tighten global supplies, alongside hopes that lower interest rates in Europe and the US could stimulate fuel demand. brent crude futures climbed by USD1.08, settling at USD74.49 per barrel, while US WTI crude gained USD1.27 to finish at USD71.29, as reported by the Al-Attiyah Foundation in its Weekly energy Market Review.

For the week, Brent saw a 5 PERCENT increase, and WTI surged by 6 PERCENT. This momentum is being fueled by anticipation of more stringent sanctions on Russia and Iran, supportive economic signals from China, political instability in the Middle East, and the likelihood of a US Federal Reserve rate cut next week. European Union ambassadors recently agreed on a 15th package of sanctions against Russia, targeting its shadow tanker fleet.

Chinese data revealed that crude imports in the world’s top oil importer grew year-on-year in November for the first time in seven months. Imports are expected to remain strong into early 2025, as refiners seek more supply from Saudi Arabia, drawn by lower prices, while independent refiners rush to utilize their quotas.

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