Key information
- Crude oil futures rose on concerns that EU sanctions against Russia could restrict global supplies.
- Oil prices rose on the NYMEX, with WTI gaining $4.09 and Brent $3.37 for the week.
- The IEA has revised upwards its oil demand projections for 2025, attributing the change to China's recovery initiatives.
Crude oil and refined products futures rose midday Friday, fueled by concerns that the European Union's tightening sanctions against Russia could restrict global supply. The February West Texas Intermediate contract on the NYMEX platform gained 1.27 cents, settling at $71.29 per barrel. Simultaneously, the February London-based Brent contract rose 1.08 cents to $74.49 a barrel. Both WTI and Brent finished the week with notable gains: WTI rose $4.09 and Brent rose $3.37.
These increases are explained by the uncertainty reigning in the Middle East following the departure of former Syrian leader Bashar Al-Assad to Moscow, thus ending 24 years of rule. Furthermore, recent Chinese data revealed a significant increase in oil imports.
The February NYMEX RBOB contract rose 1.05 cents to $2.008 per gallon, while the January RBOB contract rose 1.25 cents to $2.001 per gallon. On the diesel front, the February NYMEX ULSD contract gained 2.8 cents, hitting $2.2705 per gallon, and the January ULSD contract rose 2.95 cents to settle at $2.266 per gallon.
Sanctions against Russia
EU leaders reached consensus on Wednesday on a new round of sanctions targeting Russia. At the same time, the Biden administration is reportedly considering taking additional measures against the Kremlin, according to media reports. British, French and German officials are also reportedly considering new international sanctions against Iran to prevent it from acquiring nuclear weapons.
On Thursday, the International Energy Agency (IEA) revised upwards its oil demand projections for 2025, attributing the change to the anticipated effects of China's stimulus initiatives. However, the IEA forecasts that the growth rate will remain moderate.
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