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On Friday, 17 January, oil prices hit a fourth consecutive weekly rise as the latest US sanctions against Russian energy companies and tankers raised the cost of oil futures and shipping rates. This was reported by Reuters.
Brent crude oil futures rose 44 cents (0.5%) to $81.73 per barrel, while West Texas Intermediate (WTI) prices rose 62 cents (0.8%) to $79.3 per barrel. This week, both brands are up 2.5% and 3.6% respectively.
Experts attribute the rise in prices to concerns about supply due to US sanctions that have affected Russian oil producers and tankers. This is compounded by expectations of a recovery in demand due to a potential interest rate cut in the US, as well as increased demand for kerosene due to cold weather.
“Growing supply risks continue to support oil prices,” ING analysts said. In addition, the market is expecting the US Federal Reserve to cut interest rates, which could stimulate the economy and increase demand for energy.
On Friday, the Biden administration announced new sanctions against Russian energy companies, which further increased delivery rates and contributed to the rise in oil prices.
