Oil prices set for another weekly increase on better fuel demand

Crude oil prices are set for another weekly increase, driven by icy weather across the US and Europe that boosted heating fuel demand and heightened supply concerns. Freezing temperatures have gripped parts of the US, from east Texas to west Virginia, with Europe also experiencing colder-than-usual weather. JPMorgan analysts estimate that for every degree Fahrenheit below the 10-year average, heating oil and propane demand rises by 113,000 barrels per day.

Meanwhile, analysts highlighted uncertainty over future US policies under President-elect Donald Trump’s administration, which could affect sanctions on Russia and Iran, disrupting global oil flows. Indeed, Joe Biden was already expected to announce new sanctions on Russia’s economy this week, targeting its oil sector.

Brent crude futures settled at $76.22/barrel, up 76 cents, while US West Texas Intermediate (WTI) crude climbed 60 cents to $73.92/barrel on Thursday. According to weekly average data from ChemOrbis Price Wizard, crude oil prices are up by $4/bbl when compared to two weeks ago.



During intraday sessions on Friday, crude oil prices sustained their firming with Brent rising by 67 cents to trade around $77.59/barrel at the time of writing. WTI was also up by 65 cents to hover around $74.57/barrel. Prices hovered around their highest levels since October 2024.