RoydadNaft –  The price of Brent crude oil rose by $0.43, or 0.53%, to reach $81.72 per barrel today.

According to Reuters, as reported by Rooidad News, oil prices increased on Friday and are on track for their fourth consecutive weekly gain. Concerns about tighter supply due to new U.S. sanctions on Russian oil producers, along with signals of a potential Federal Reserve rate cut, have driven oil prices higher.

The price of U.S. West Texas Intermediate (WTI) crude also climbed, rising $0.58, or 0.74%, to settle at $79.26 per barrel.

On Thursday, expectations of an end to Yemeni attacks on ships in the Red Sea temporarily pushed both benchmarks lower. However, Brent has seen a 9% increase, and WTI a 10% rise, since the start of this year.

Analysts suggest that supply concerns stemming from U.S. sanctions on Russian oil producers and tankers, along with expected demand improvements due to potential Federal Reserve rate cuts, are bolstering the crude oil market.

Increased U.S. demand amid colder weather has also supported oil prices.

Investors are closely monitoring the latest round of sanctions by the Biden administration on Russia’s military-industrial complex and Moscow’s strategies to circumvent these restrictions. Major buyers of Russian oil are seeking alternative barrels, pushing up shipping costs.

On Thursday, Christopher Waller, a senior member of the Federal Reserve, stated that inflation is likely to decline, potentially allowing the central bank to cut interest rates sooner and more rapidly than anticipated.

Natural gas prices in the U.S. surged by about 4%, reaching their highest level in four years, driven by forecasts of harsher winter conditions.

In the Middle East, maritime security officials announced that Yemeni attacks on ships are expected to cease following a ceasefire agreement in Gaza between Israel and Hamas. These attacks had disrupted global shipping, forcing companies to navigate longer and more expensive routes around Africa for a year.

Nevertheless, investors remain cautious as Yemen has stated it will closely monitor the ceasefire’s implementation and will resume attacks on ships if Israel violates the agreement.