Brent, WTI in line for second week of gains
U.S. storm seen hitting transport demand, but boosting heating oil usage
China COVID cases, rate hikes, recessions fears cap gains

SINGAPORE, Dec 23 Reuters Oil prices rose more than 1 on Friday on expectations of a drop in Russian crude supply, which helped offset worries of a hit to U.S. transport fuel demand growth as a looming Arctic storm threatens travel during the holiday season.

Brent crude was up by 73 cents, or 0.9, to 81.71 a barrel by 0715 GMT, while U.S. West Texas Intermediate WTI crude was at 78.40 a barrel, up 91 cents, or 1.2 higher.

They hit highs of 82.17 and 78.77, respectively, earlier in the session. Both contracts were on track to post a second weekly gain, with Brent up 3.3 and WTI up 5.5.

Russia39;s Baltic oil exports could fall by 20 in December from the previous month after the European Union and G7 nations imposed sanctions and a price cap on Russian crude from Dec. 5, according to traders and Reuters calculations.

Russia may cut oil output by 57 in early 2023 as it responds to price caps on its crude and oil products by halting sales to the countries which support them, the RIA news agency cited Deputy Prime Minister Alexander Novak as saying on Friday.

Crude prices are higher as energy traders focus on Moscow39;s response to the price cap put on Russian oil and not so much the thousands of flight cancellations that will disrupt holiday travel, OANDA analyst Edward Moya said.

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