RoydadNaft –  The price of Brent crude oil from the North Sea rose today by 35 cents, equivalent to a 0.46% increase, reaching $77.27 per barrel. Similarly, West Texas Intermediate (WTI) in the United States also increased by 34 cents, or 0.46%, to trade at $74.26 per barrel.

According to Reuters, oil prices have risen in the early hours of trading in Asia on Friday, setting the stage for a third consecutive weekly gain. The cold weather in parts of the US and Europe has driven up demand for heating fuels.

Brent crude has seen a 5.9% price increase over the three weeks leading up to January 10, while WTI has risen by 6.9% during the same period.

Analysts from JP Morgan attribute this price surge to heightened concerns about supply disruptions due to escalating sanctions, low inventory levels, severe cold weather across many parts of the US and Europe, and positive outcomes from China’s financial stimulus measures.

The US Weather Service expects central and eastern regions of the country to experience below-average temperatures. Similarly, many parts of Europe have encountered severe cold, starting the new year with temperatures lower than usual, thereby increasing fuel demand.

In a note released on Friday, JP Morgan forecasted a global demand increase for oil by 1.6 million barrels per day in the first quarter of 2025, driven by the need for heating fuels.

Despite the strengthening of the dollar index for six consecutive weeks, which typically impacts oil prices by making it more expensive for holders of other currencies, oil prices have continued to climb.

Supply is expected to tighten further as US President Joe Biden is likely to impose new sanctions targeting Russia’s economy, particularly its oil industry.